Blank cells are an invisible pain in the analysis. Dealing with them is frustrating, time-consuming and often very complex. At chandoo.org, we are not big fans of blank cells. That is why we wrote:
- How to delete blank cells & rows?
- Dealing with blanks – case study
- Quickly filling blank cells in a table
- Extracting non-blank data from a list
Today, lets talk about one more scenario. Lets say you want to find out the first non-blank item in a list. How would you do it?
Finding first non-blank item in a list
Lets say our list is in the range B3:B100.
Without using formulas
If you just want to get the first non-blank item in a list and do not want to use formulas, then you can remove all the blank items from the list. To do this:
- Select entire list
- Press F5, click on special
- Choose blanks, click ok.
- Press CTRL –
- Remove rows (or shift cells up as needed).
- Done!
Now that the blank cells are gone, just refer to B3 to get the first non-blank item in the list.
Using formulas
Although the non-formula approach works, it is manual. That means every time your data changes, you must repeat the steps. Not very cool, especially if you call yourself awesome. So, lets use a powerful formula to get that first non blank item in our list.
First see the formula:
=VLOOKUP("*", B3:B100, 1,FALSE)
How it works?
We want to lookup for first cell that contains something. It does not matter what that value is.
That is what * does. * is a wild card in Excel. When you ask VLOOKUP to find *, it finds the first cell that contains anything.
NOTE: This approach finds first cell that contains any TEXT. So if the first non-blank cell is a number (or date, % or Boolean value), the formula shows next cell that contains text.
How to find first non-blank value (text or number)?
If you want to find first non-blank value, whether it is text or number, then you can use below array formula.
=INDEX(B3:B100, MATCH(FALSE, ISBLANK(B3:B100), 0))
Make sure you press CTRL+Shift+Enter after typing this formula.
How this formula works?
ISBLANK(B3:B100) portion: This gives us list of TRUE / FALSE values depending on the 98 cells in B3:B100 are blank or not. It looks like this:
{TRUE;TRUE;TRUE;FALSE;FALSE;FALSE;FALSE; ...}
MATCH(FALSE, ISBLANK(…), 0) portion: Once we have the TRUE / FALSE values, we just need to find the first FALSE value (ie, first non-blank cell). That is what this MATCH function does. It finds an exact match of FALSE value in the list. (Related: Using MATCH Formula)
INDEX(B3:B100, MATCH(…)) portion: Once we know which cell is the first non-blank cell, we need its value. That is what INDEX does. (Related: Introduction to INDEX formula)
Home work for you
If you like this formula and want some challenge, read on.
For these home work problems, use the range B3:B100 or named range list in your formulas.
- Can you think of some other formulas to find first non-blank cell?
- What formula gives 2nd non-blank cell value?
- What formula gives last non-blank cell value?
Go ahead and post your answers using comments.
Drawing a blank when working on lookups?
If you are giving blank stares whenever your boss asks for lookup related stuff, then you are going to love this. My latest publication, The VLOOKUP Bookis a comprehensive guide to VLOOKUP, INDEX, MATCH, LOOKUP and other techniques to lookup any data and answer questions with confidence.
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Comprehensive and easy to understand
This is a book for everyone who uses Vlookup. Most of us think… Oh.. I already know the function. But this book will open your eyes to some brilliant techniques. – By Dr. Nitin Paranjape
Solid introduction to lookup functions
This books does a wonderful job of taking each of the lookup functions available in Excel, breaking them down to a simple, easy-to-understand level. – by Lucas Moraga |
15 Responses to “Modeling Interest During Construction (IDC) – Excel Project Finance”
Thanks again for a very helpful post.
I had a similar problem when trying to model a balance sheet and profit and loss projection. The problem was that interest expense (in P&L) was dependent on a cash shortfall (in BS) which had to be funded. The cash shortfall depended on how much interest was paid, so the mutual dependency made a circular reference.
I addressed it with a macro that calculated interest outside of the P&L, then pasted the calculated amount into the P&L as a value. The model was out of balance, but by repeating the pasting and calculating loop the imbalance reduced to zero. It was a bit messy, and had to be repeated every time a line changed - but it worked.
If I have to do it again I'll read this article again first and see if it can be done more elegantly.
Hi,
The use of a circular reference can be avoided in this case. Just make use of the geometric sum to calculate the interest required. I’ll walk through the example from the spreadsheet.
First calculate the cash needed each year without the interest expense. So you year 1 you need 55 Mn, year 2 105 Mn, and 190 Mn for year 3. The total amount to borrow for year 1 is then (50 Mn)/(1-interest_rate) = (50)/(1-0.1). For years 2 and subsequent the amount borrowed is the cash needed in that year plus the interest_rate times the amount already borrowed. For year 2 (105 + interest_rate * sum(previous debt raised))/(1-interest_rate)=(105+0.1*61.1)/(1-0.1).
This process avoids the need for a circular reference, and makes the calculation more stable.
Thanks,
Tristan
The question is for the year 1 in your case, the amount works out to 45 mn. However in the year 2 you have applied the loan amount as 61.1 mn.
Am I missing something ! Please help !
very helpful information!!!
using circular references and to make model more stable we can use combination of "IF" and "ISERROR" functions. i.e
=if(iserror(formula1),"",(formula1))
this formula will return blank value if there is any error otherwise give the result required.
I usually use this in my models and it makes them very stable......
🙂 🙂 🙂
@Terry: Thats right. Exactly same problem is seen in Interest - Cash cycle in P&L and Cash Flow statement as well. In our trainings on financial modeling in excel, we demonstrate using both the circular loops as well as the macros to take care of this problem. Circular loops have their own pitfalls. If the model enters into a state of error, the error percolates!
@Tristan: Thanks for pointing out. I agree with you that if circular loops can be avoided, they should be avoided.
@Yogesh: This is one way of avoiding the problem. Although circular loops have another problem that they make your sheet slower. Each time, there is a change in the sheet, all the calculations are redone. So if they can be avoided, they should be avoided.
Please note that this was an example (a large one indeed) and I didn't have space to speak about the pitfalls of this approach! I just wanted to illustrate an approach and am glad that some of you found it useful!
I think while posting, there is an error in the images! The last image should be flipped with the one that is posted in step VII!
I think you can try the following simple solution given by Microsoft itself to make the circular works:
Windows: Excel Options -> Formulas -> Put a tick on "Enable iterative calculation"
Mac: Excel -> Preference -> Calculation ->Put a tick on "Limit iteration"
You can change the maximum number of calculation iterations as well as the maximum changes which iteration stops for goal seeking or for resolving circular references based on the number you type in the maximum change box.
Thank you.
Hey All
I heard that we can take care of the circularity with the help of macro for IDC. Can anybody help on the steps to construct the macro for the same.
Regards
Vinay
Hi Vinay,
If you look closely, you are essentially copying the values from the interest calculation to the IDC in project cost.
Basically you can record a macro, that takes the values from interest and pastes special the values in IDC row in project cost.
Then you can run that recorded code in a for loop.
Hope this helps.
Thanks Param for reply.
But before calculating interest, i need to provide for Upfront Equity and Equity, which are essentially part of total project cost. Hence, i need to put in Upfront Equity and Equity to calculate the IDC which is again hitting the total project cost.
Bit of confused on how to remove this circular reference.
Regards
Vinay
Wow, this was a brilliantly simple post. I was looking online for a while before I found this page. Never seen this been explained so beautifully yet so crisply before. Thanks for saving my ass at work! (i'm relatively new to finance + modeling)
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[…] Project Finance Modeling using Excel – Part 1 & Part 2 […]
I have been reading your blog since my college days. Today, I'm writing just to say thanks.
We have calculated Financial Rate of return of a hydropower projects, and the observer has raised an observation regarding Total Project cost with IDC Rs. 8616.01 million (PKR) and with-out IDC 8352.46 million (PKR). How does the Financial nalysis be calculated on the basis of with-out IDC Or With IDC?????
Please helpf. if possible to spare some time.