Documenting Excel Models Best Practices When working on large and complicated financial models in Microsoft Excel, it can be quite challenging to document them clearly for ease of use and understandability. We will discuss several Excel model best practices and other useful tips and tricks that users can apply to maintain and audit their models…
What is a Histogram? A histogram is used to summarize discrete or continuous data. In other words, it provides a visual interpretation of numerical data by showing the number of data points that fall within a specified range of values (called “bins”). It is similar to a vertical bar graph. However, a histogram, unlike a…
Declaring VBA Variables using Dim This guide breaks down VBA variables, Data Types, and Dim. Typically, the very first step after naming your macro is declaring your variables. Variables are names for different pieces of the data that the macro will be working with. However, this sometimes proves difficult since it’s hard to plan ahead how…
What is the Fortune 500? The Fortune 500 is an annual list of the top 500 United States companies by total revenues – public and private included. The list is compiled and published by Fortune Magazine, which is based in New York, USA. History of Fortune Magazine Founded in 1929 by Henry Robinson Luce, Fortune…
Top 10 Types of Graphs Any good financial analyst knows the importance of effectively communicating results, which largely comes down to knowing the different types of charts and graphs and when and how to use them. In this guide, we outline the top 10 types of graphs in Excel and what situation each kind is…
The VLOOKUP guide below explains how to use the VLOOKUP function in Excel to search for a value in the first column of a table and return a value in the same row from a specified column. The formula is structured as =VLOOKUP(lookup_value, table_array, col_index_num, [range_lookup]). Key steps include organizing data, specifying lookup and table…
Why Use the XNPV Function in Excel? The XNPV Function in Excel uses specific dates that correspond to each cash flow being discounted in the series, whereas the regular NPV function automatically assumes all the time periods are equal. For this reason, the XNPV function is far more precise and should be used instead of…
What is a Correlation Matrix? A correlation matrix is simply a table that displays the correlation coefficients for different variables. The matrix depicts the correlation between all the possible pairs of values in a table. It is a powerful tool to summarize a large dataset and to identify and visualize patterns in the given data….
