Today is February 29th, and that means, this year we have one more day to be awesome. So lets celebrate it in Excel style!
Lets learn 14 different ways to tell if an year is leap year, using Excel Formulas.
Why 14? because, we are awesome like that.
Why 14 methods to just find the year in cell D4 is leap year or not? Because, we all know that by learning different ways to solve a problem, we become smarter, more awesome and have more fun. So lets roll.
Before we start..,
Since all the 14 methods rely on certain calculations, I have created some names. See below:
All the names are self-explanatory, except the febDays. So lets take a look at it.
febDays formula
For one of the methods, we need to have all the dates in February in a list. If we want the first of Feb as a date, we can use =DATE(year,2,1). But we want all dates in February. That means, we need to use a list (array) in third parameter of DATE like this:
=DATE(year,2,{1,2,3,4,….,28,29})
Instead of typing all the 28/29 numbers, we can use ROW formula to generate these, like:
=ROW($A$1:$A$29) would give me a numbers from 1 thru 29.
But the problem is in many years Feb has only 28 days, and for rest, it has 29 days. So we modify the second part of row formula and use the last DAY of the Feb, like this:
=ROW($A$1: INDEX($A$1:$A$29,DAY(EOMONTH(feb1st,0))))
To get the last day of a month, we use = DAY(EOMONTH(1st date, 0))
I think you can put the rest of pieces together to solve this puzzle.
Moving on,
#1 – The year has 366 days
This is the obvious one. We use =DATE(year+1,1,1)-jan1st=366 to check if there are 366 days between January 1st of next year and this year.
#2 – February 29th is not March 1st
Because in Excel all dates are numbers, when we use a formula like =DATE(2011,2,29), Excel gives us the date of March 1st, even though we wanted 29th Day of February in 2011. So a simple leap year check is to see if February 29 is March 1st or not!
=DATE(year,2,29)<>mar1st
#3 – February has 29 days
This is another obvious test. In a leap year, February has 29 days. So=DAY(EOMONTH(feb1st,0))=29 will be true for leap years.
#4 – February 1st and March 1st are not on same day of week
In non leap years, Feb has 28 days (a multiple of 7), so both Feb and March start on same day of week. So, =WEEKDAY(feb1st)<>WEEKDAY(mar1st) will be TRUE for leap years.
#5 – Adding 365 to January 1st does not change year
Well, that is obvious too. =YEAR(jan1st)=YEAR(jan1st+365) is TRUE for leap years.
#6 – 30th Day of February is March 1st
If an year is leap year, 30th day of February [DATE(year,2,30)] is same as March 1st. So, =DATE(year,2,30)=mar1st is TRUE for leap years.
#7 – 0th Day of March is Feb 29th
In real world there is no zeroth day for any month. But in Excel, since all dates are numbers, 0th day refers to last day of previous month. So, =DAY(DATE(year,3,0))=29 will be TRUE in leap years.
#8 – April 1st and January 1st are on same day of week
In leap years, there are 91 days between January 1st and April 1st. And since 91 is a multiple of 7, both April 1st and January 1st start on same day of week. Hence, =WEEKDAY(jan1st)=WEEKDAY(apr1st) will be true for leap years.
#9 – Only 2 more months start on same day of week as January
In leap years, both April and July start on same day of week as January. (Where as in non-leap years, Only October starts on same day of week as Jan).
To test this, we will of course use the SUMPRODUCT. like this:
=SUMPRODUCT(–(WEEKDAY(DATE(year,ROW($A$2:$A$12),1))=WEEKDAY(jan1st)))=2
The portion WEEKDAY(DATE(year,ROW($A$2:$A$12),1)) gives all the first day of weeks from February to December. And then we just check how many of these are same as January 1st’s week day.
#10 – Next year’s February 1st and this year’s February 2nd are NOT on same day of week
In non-leap years, there are 364 days between February 2nd and next year’s February 1st. Since 364 is a multiple of 7, both of these days are on same day of week. Which is not the case in leap years (as the difference becomes 365). So, =WEEKDAY(feb1st+1)<>WEEKDAY(EDATE(feb1st,12)) will be TRUE for leap years.
#11 – February 1st’s day of week occurs 5 times in that month
This a bit tricky to test, but then again we have SUMPRODUCT. So, =SUMPRODUCT(–(WEEKDAY(febDays)=WEEKDAY(feb1st)))=5 will be TRUE for leap years. The name febDays has all dates in February. I think the rest is easy to understand.
#12 – February starts and ends on same day of week
29 days means both 1st and 29 are on same weekday. So, =WEEKDAY(feb1st)=WEEKDAY(EOMONTH(feb1st,0)) will be true for leap years.
#13 – Spreadsheet day (October 17) and February 1st are on same day of week
Debra, who is a well known Excel blogger & author started the whole spreadsheet day thing. She says, we should celebrate October 17 as spreadsheet day. I love that idea, mainly because, it is just 3 days before my birthday and I like celebrations. And I also like Excel 🙂 So blame her if you do not like this way of testing for leap years.
In leap years, there are 259 days between February 1st and October 17. And since 259 is a multiple of 7 (and 37), we know that they are both on same day of week. So, =WEEKDAY(feb1st)=WEEKDAY(DATE(year,10,17)) is true for leap years.
#14 – Finally, the year is divisible by 4 and if it is divisible by 100, then also by 400
Finally, we are going to test the whole “an year is leap year if it is divisible by 4 and if it is divisible by 100, then it is also divisible by 400” thing. This is a slightly tricky one to test. The formula, =((MOD(year,4)=0)*((MOD(year,100)<>0)+(MOD(year,400)=0))=1) will be TRUE for leap years and false for non-leap years.
Download Leap Year Test Workbook
Click here to download the workbook with all these 14 examples. Play with the formulas, named ranges to understand these techniques.
How do you check it is a leap year?
If you are working and you get paid on first day of a month, then one clear way of knowing leap year is that you get your salary one day later. Other than this, what method would you use to find if an year is leap year. Go ahead and be creative. Share your ideas and formulas using comments. Next leap day is 4 years away. Go
Want to learn how to Dates & Times in Excel – Read these:
If you deal with data that has a lot of date / time stuff, then understanding various Excel features in this area is a must. Read below pages to learn more.
- 10 tips on working with dates & times in Excel
- Calculate difference between 2 dates
- Find thanksgiving day for any year
- Check if 2 ranges of dates overlap
- Rolling months in Excel
- How to convert text to dates
- Even more on Excel dates & times
Want to master Date & Other Excel Formulas?
If you want to learn how various formulas in this post work and know more about everyday Excel formulas, please consider joining my Excel Formula crash course. It has detailed video tutorials on more than 40 everyday Excel formulas and teaches you all the powerful techniques to become a formula ninja.
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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Great information, i also want to learn financial modeling, how to learn
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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
[...] you do not wish to join our course, we are still cool. Here is a 6 part training on financial modeling & 2 part training on project finance. They are free, fresh and [...]
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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Thanks Paramdeep this is great!
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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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Another step to build any financial model is to do a financial analysis beforehand. This normally helps to design and come up with good projections.
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