Chandoo.org is all about simplifying life using Excel. When I first started visiting the site, I was amazed at the amount of information on the site, which made your life easier. My next few posts would be about excel functions which can make your life for Financial Modeling easier! These are simple examples that you might find relevant in your daily life as well.
Let’s say your organization had 10 business segments, each segment selling different products at different prices. You have data available for the segments, how do you consolidate the revenues in one shot?
How do you model this in excel fast? In this tutorial we understand how you can use SumProduct() formula to do that!
What is the SumProduct() function
SumProduct() formula in excel, would take a couple of arrays (Say A and B) as inputs. Multiple corresponding items in each Array – A[1] x B[1], A[2] x B[2], … and sum them together.
SumProduct would get you the total revenue from a segmental breakup
The function is simple, it does all the difficult calculations for you and gets you the solution!
Traditional way of calculating consolidated Revenues
Step I: Getting the Segmental Revenues
Step II: Summing up the revenues
Consolidated Revenues using SumProduct()
Using the SumProduct() the consolidated revenues can be calculated in a single cell! It’s like the calculation is on fire!
Where else can this function be useful in Finance?
The function would see a lot of usage in the financial models. You can use it to consolidate revenues (Segmental volumes and prices to total revenues), calculate depreciations (when you have various assets and depreciation rates), consolidate costs (different raw material prices and volumes), NPV (Discount Rates and Cash flows), etc.
Are you also using SumProduct() function in Finance?
I have used SumProduct in my models. I find them to be very useful and speed up the modelling process. But sometimes I find that they confuse the readers of my model. Have you used the function in your models?
Templates to download
I have created a template for you, where the subheadings are given and you have use the functions to get the right values for you! You can download the same from here. You can go through the case and fill in the yellow boxes. I also recommend that you try to create this structure on your own (so that you get a hang of what information is to be recorded).
Also you can download this filled template and check, if the information you recorded, matches mine or not!
Join our Financial Modeling Classes
We are glad to inform that our new financial modeling & project finance modeling online class is ready for your consideration.
Please click here to learn more about the program & sign-up.
The article is written by Paramdeep from Pristine.
Chandoo.org has partnered with Pristine to launch a Financial Modeling Course. For details click here.
22 Responses to “Master Excel 2007 Ribbon with this Free Learning Guide”
Thank you, kind sir. Well done with the baby making.
I cannot get signed up for your newsletter. I tied both this email address and churchill2001@hotmail.com. never a response.
I cannot get signed up for your newsletter. I tied both this email address and churchill2001_at_hotmail_dot_com. never a response for either attempt.
@Doug, it shows that your email address is pending verification. Can you check your inbox (and may be spam folder too) for an email from me? The subject will be "Activate Subscription to Get your Free Excel Tips E-book"
[...] PPS: If you are struggling with ribbon, you should check out ribbon learning guide. [...]
Very Useful Info..Keep it up..
@Ajay.. you are welcome 🙂
how do u download microsoft excel for free?
http://www.microsoft.com/en-us/default.aspx
Select Office
Free Trial
[...] Excel 2010 UI looks considerably better and less stressful than 2007. The colors are dull and subtle. The icons don’t call for attention unless you want to do something. The menus / ribbons feel smoother and slicker. [Learn to use Excel Ribbon with this Free e-Book] [...]
I can't open this pdf. I get the error message:
You do not have the required license to open this file.
Please request a license from the creator of the file, and add it using the license manager and they try opening it again.
What gives??
I downloaded the file again and it worked this time. Strange. (First file was 116 KB, second was 1644 KB... ???)
[...] More ribbon goodness | Free e-book to learn Excel Ribbon [...]
Hi Chandoo,
thanks for sharing your Excel 2007 learning experience with us; unfortunately the link to the pdf of the free Excel 2007 learning guide seems broken: my Acrobate Readers flags: "Unkown file type or corrupte data".
Have a nice day
Michael
well done this is great
Can somebody just provide a link the classic TAB exportedUI files for MS Office 2003 for us to use in office 2007/2010?. searching online, everybody just wnats to make a buck online with silly Classic Tab installers which do nothing more than inport exportedUI files for you.
Don't give me a ribbon how to guide, just give me free exportedUI files. I should not have to pay anyone for this, it is free XML, MS should have included this to begin with.
thanks
Dear.
There are a set of debit values and a set ot credit values in a column. I want a vba code by whcich the debit value plus a single / multiple credit value is zero that needs to be marked .
finally i will come to know out of the avaibale debits which cannot be used the with avilable credits either single or multiple values.
If multiple matching sets are available let it take the 1st or the 2nd one its not an issue.
Column A Ref
-1000 A
-5000 B
-8000 C
800 A
100 A
100 A
2000 B
3000 B
13000
15000
hi...
how to make this add-ins and display in ribbon... check this sample : http://www.cprsoft.com/GCDemo01.htm
thank you sir...
Please tell me format painter short cut key In excel ?
Thanks In Advance
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