Yesterday in Formula Forensics 008 we looked at Elkhans MaxIf problem.
However the solution/formula as presented is the final solution to his problem.
Elkhans original worksheet contained other problems and today we will look at this:
I have attached the orginal file as a sample file you can Download Here.
You will see that the MaxIf cell F13 is returning 0, where it should be showing 0.246
Houston, We’ve Had a Problem!
Cell F13 has the same formula we looked at in yesterday’s Formula Forensics: =MAX(IF((Parameter_3=D13)*(Parameter_4=E13),Parameter_5,0))
A quick check of the formula reveals that everything was technically right with the formula, yet the answer is wrong?
To solve this I tried several steps which is the topic of this post:
Examine the logic of the If’s Criteria
The formula =MAX(IF((Parameter_3=D13)*(Parameter_4=E13),Parameter_5,0)) works by calculating the maximum value from the If array.
So step 1 was to look at the logic in the If’s Criteria
That is (Parameter_3=D13)*(Parameter_4=E13)
In cell F15 I entered = (Parameter_3=D13)*(Parameter_4=E13) followed by F9
Excel returns: = {0;0;0;0;0;0;0;0;0;0;0}
This tells me that none of the Cells match the criteria, strange?
Yet manually I can see 4 matching records, below:
Check Cell Length
The next quick step was to look at the length of the text in each cell.
In Column I, I added a =Len(E2) and copied down, there was only 2 characters in each cell, this step eliminated leading or trailing spaces.
Retype the Data
Elkham supplied the source data in an Excel file.
But the Criteria was manually typed by me.
So the next step was to retype some of the original data in Cell E2
Wow an Answer, So obviously there was a difference?
What is Wrong Here?
So obviously there was a difference between the C1 in cell E2 and the C1 in cell E13?
I checked this in 3 ways
1. Type the value “C1” into Cell E2, without the quotes
This returned an answer 0.08 from F2 as it should have.
2. Copy an old “C1” value to E13
This resulted in the correct answer of 0.246 in F13
3. Use a quick Formula
Entering a quick formula
In F17 type =E2=E13
Excel returns False
Showing that the value of cell E2 does not match E13
So what is in E2:E12 ?
As I had typed the values into the Criteria Cells D13:E13, I knew what they were, they were a plain and simple “C1”
So what was in E2:E12 ?
Next step was to look at the Ascii values of the 2 characters in Column E.
In K2: =Code(Left(E2,1))
In L2: =Code(Right(E2,1))
Copy both down to Row 13
Bingo !
The Character C in cell E2 wasn’t the same as the Character C in E13 ?
Yet both cells contained a Calibri Font.
If I now type in a spare cells:
F18 =Char(63), Excel displays a “?”
F19 =Char(67), Excel displays a “C”
Yet Cell E2 is clearly displaying C1 with a First Character Ascii code of 63 which should be a ? mark.
I suspected that it had been copied and pasted from MS Access, So I shot an email back to Elkhan, asking “What the source of the data was?”.
The response came back that “The data had been copied from a Russian (Cyrillic) version of an MS Word File and pasted into an English version of Excel.”
I can’t explain what has happened but somehow the character sets and associated values got scrambled when copied the data from the Russian Word Document into Excel
If you have had experiences like this or can explain what has happened please do so in the comments below:
Solution
The Solution was now easy
Use Search/Replace
Copy the contents of cell E1,
goto Search/Replace or Ctrl H
Find: Paste the contents of Cell E1
Replace with: C1
Conclusions:
- Be careful when receiving data from foreign language files, including word and Excel files
- Check summations based on such data to ensure its integrity
- Be methodical in tracking down problem cells
Lets us know about your Data Transfer Nightmares
Have you had any strange data transfer issues?
Let us know in the comments below.
62 Responses to “Introduction to Financial Modeling using Excel [Part 1 of 6]”
Oooh! Chandoo - are you looking to outperform the Altman Z-Score?
I'm all ears 😉
Many thanks, Paramdeep. Looking forward to the remaining parts of the series
Thank you Paramdeep. I look forward to following the series.
Those interested in Financial Modelling may also find this site interesting:
http://www.fimodo.com/
Hi Chandoo,
Really looking forward for this awesome financial modeling journey 🙂
All the very best..
Regards
Rohit1409
Hi Chandoo,
it seems the future is not away when we will have a new software/spreadsheet as competitor to Microsoft Office/Linux etc.......Hats Off to you..
KEEP SMILING
GURU
@apex, clarity: Thanks...
@all: I do hope that you have started creating the model for the simple case given.. Lets see, what according to you all is the best way forward. So your views on the best practices for the template for valuation?
The planning process varies depending on the project and type of data I am looking at.
If I am doing a cost impact study based on actuals, verses a cost impact study to estimate future cost, verses reviewing historical data then creating a model, verse having to review historical data, apply it to a draft model, update the model based on the draft outputs and the presentation then sometimes repeat the process a few times.
Revisions are an absolutely necessary part of corporate financial modeling especially for the presentation sections. A good presentation will be revised multiple time. There are just to many elements which cannot be planned for, especially with ad hoc reports/models.
Revisions are leading cause of errors, and time spent tracking down errors. The more complex the model the more important revision control is. I would be interested in a section on revision control and good methodologies to determine the effect of changes on models. That is without having to due detail review of the whole model over again.
Hi Paramdeep,
I can't wait for the continuation of this series. You have done a great job in making technical terms appear simple and easy to understand. This article is also very useful in our line of business, in fact i will be featuring this article in our site. Of course the credits will go out to you.
Many thanks and keep it up!
Drew
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@Drew: Thanks! Hope that you found the tutorials useful. Feel free to get back with any queries.
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chando bhai i m tired for looking financial modeling detail but i cant find it anyway. so plz kindly send me full detail of financial modeling from beginning levelo to final. where i learn complete modeling procedure n order to become professional
You noob, you won`t become a professional like that, you need to do it on your own and learn as you go
@Nadeem Bhai,
The 6 links to the tutorial at the top of this post, build a small integrated financial model step by step. We are also running a complete 8 weeks course on financial modeling (similar to excel school). But that is almost 50% complete right now. If you want to join, you can join the next batch (probably starting in Jan/ Feb)
Feel free to get back, if you have any queries regarding the model/ steps in creating the same
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I want to learn how to build a financial model
Dear Lulama,
You can use this tutorial to learn to build a financial model. We also run a course on financial modeling and project finance modeling. The details can be obtained from:
http://chandoo.org/wp/financial-modeling/
You can consider joining that as well.
I would strongly encourage you to join the newsletter to get the updates about financial modeling and the next batch starting for the course.
I want to learn thorough excel and financial modelling thing !!! I am a chartered accountant..CAn you please suggest a detail syllabus that should be learn by me. Also suggest any classes that would cover everything in excel and financial modelling related things.. I stay in mumbai, so please suggest a class in mumbai or any books..byyee.. thanks ..
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Hi Vivek,
We do conduct the financial modeling course online as well as in Mumbai. We start with the basics of excel and build a completely integrated financial model in the class. For details you can look at:
http://chandoo.org/wp/financial-modeling/
or
http://www.edupristine.com/courses/financial-modeling/prisitne-fm-offering
Please describe to me various type of financial modela and demonstrate how a model can be build.
Regards,
Dear Immanuel,
This series of articles does exactly that. If you go step by step through the articles and create the excel sheets on your own, you will understand how to create an integrated financial model.
Alternatively, if you are looking for video sessions, you can consider joining our course:
http://chandoo.org/wp/financial-modeling/
It is expected to reopen somewhere in mid july.
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Paramdeep Hi! A bit ignorant here, but let's ask anyway. Can I access "recorded" video sessions apart from following the step by step articles?
Thanks!
@Marius: Yes, we do have a training program with recorded video sessions. If you are interested, you can enroll for the same. The details can be obtained from: http://chandoo.org/wp/financial-modeling/
i want to know about the scope of financial modeling.i also want to know after doing financial modeling course what are the job prospect, like where i can found job so plz send me full detail of financial modeling from beginning levelo to final.
I am interested to join your Financial modelling class cos am involved in a new business. But I have a Macbook Air with Excel for Mac installed. Would that work with your program?
Dear Charsiew,
The complete training program is built using Excel 2007 with MS windows. Though there is nothing specific to Microsoft in the training. I think a few people have joined the program and are using MAC. If you write an email to me on paramdeep @ gmail.com, I can send you the email ids of those participants and you can get to know their feedback and difficulties in using the program.
This is great, when does the next batch start?
Dear Karan,
The course is in recorded format and you can register for the same as soon as you want.
Paramdeep, thanks. I'm venturing into financial modelling for the first time and from the little I've read from your website already, I'm sure I'll find your resources very useful; thanks once again.
Dear Seun,
I am glad that you are finding the resources to be useful. Feel free to send in comments with your feedback and further questions.
hie ppl...I jst wantd a small favour cn smone help me out in calculating EBITDA, along with its working, from wipros annual report 2011-2012, link - http://www.wipro.com/investors/annual-reports.aspx
...PLZ plz... i am having a submission tommorow.
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Nice article.
In designing Excel Financial Models I design the user interface as friendly as possible and structuring the input variables in the workflow of the client's operations so that they can flow through the impact of the input variables in Excel using buttons and macros and giving the model transparency.
Cheers
Arthur
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