This post is authored by Martin, one of our readers.
Situation:
Sometimes I encounter data in my tables with blank cells where there is a repeated value from the cell directly above. See below:
This can be annoying when it comes to interpreting the data and when sorting columns.
Solution:
Here’s the solution I use.
1. Select the whole table. I favor the shortcut Ctrl A to do this. Make sure you perform this shortcut from within the table though as otherwise the entire worksheet with be selected. This gives us Figure 2:
2. Next we will open the Go To dialog box. This is a very useful dialog for selecting certain types of cells, for example cells containing formulas, constant values, visible cells and so on. F5 or Ctrl G both work as keyboard shortcuts.
3. Click the Special button (see Figure 3)
4. In the next screen select Blanks.
5. Click OK and notice that all blank cells are now highlighted in the table (Figure 5). Notice too, the position of the active cell. This is the one un-shaded cell in this selection. In this example it is cell D3. If the table were fully complete this cell would show the same value as the cell above it – cell D2 – the word Office.
6. Next we will use the fact that cell references in Excel by default behave in a relative manner. That means when you copy a formula to another cell, the cell reference in the formula change relative to the location in the worksheet it has been moved to unless they have been made absolute.
7. Without clicking any of the cells in the data, simply enter the following simple formula:
=D2
If you are following along here with a different table, then you will substitute the cell reference of the cell directly above your active cell. (Figure 6)
8. Next the important part. We need to copy this simple formula to all the other blank cells which could number in the hundreds or thousands or greater still. How do we do it?
Simply by using one of the best keyboard shortcuts I know in Excel: Ctrl & Enter.
This shortcut when used in a single cell will enter the value inputted into the cell and keep that cell active, instead of performing a carriage return to the next row.
But, when used over a range of cells, Ctrl & Enter together will copy the value of the active cell into all cells in the selection.
In this case, we are not going to copy the value of D2 into all blank cells, but the relative cell that appears over each blank cell. In cell D3’s case this was D2. In A3’s case for example it is A2 and so on.
After CTRL Entering the formula the worksheet now looks like:
9. There is one last important step. These pasted valued are, as we have seen, relative formulas. If I were to change the sort order in one of the columns, for example to identify which Cost in column E is the highest, my table would be completed distorted as the formulas in the changing rows are all retrieving the value in the cell above. See Figure 8.
I’ll Undo my flawed Sort by clicking Ctrl Z.
The final step therefore is to change these formulas into constants so that this type of problem can be avoided.
To do this, select the table, (or if the formula cells remain highlighted, you won’t need to select the table at all).
Now copy your selection with Ctrl C.
Next, perform a Paste Special / Values to replace the formulas with their constant equivalents – Figure 9.
And that’s it!
Thank you Martin
Many thanks to Martin for sharing this simple yet very beautiful trick with all of us. If you enjoyed this article, say thanks to Martin.
How do you deal with Blank Cells
Barking dogs, bad bosses and blank cells are everywhere. I am eager to know how you deal with them. Please share your tips & techniques with us using comments.
More on Blank Cells and other Unclean Data
If you constantly deal with blank cells or other types of unclean data, read these articles to learn few more tricks.
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
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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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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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