Introduction to MS-Excel

MS-EXCEL is a part of Microsoft Office suite software. It is an electronic spreadsheet with

numerous rows and columns, used for organizing data, graphically represent data(s), and
performing different calculations. It consists of 1048576 rows and 16384 columns, a row and
column together make a cell. Each cell has an address defined by column name and row
number example A1, D2, etc. this is also known as a cell reference.
Cell references: The address or name of a cell or a range of cells is known as Cell reference.
It helps the software to identify the cell from where the data/value is to be used in the
formula. We can reference the cell of other worksheets and also of other programs.
 Referencing the cell of other worksheets is known as External referencing.
 Referencing the cell of other programs is known as Remote referencing.
There are three types of cell references in Excel:
1. Relative reference.
2. Absolute reference.
3. Mixed reference.

The Ribbon in MS-Excel is the topmost row of tabs that provide the user with different
facilities/functionalities. These tabs are:

1. Home Tab: It provides the basic facilities like changing the font, size of text, editing the
cells in the spreadsheet, autosum, etc.
2. Insert Tab: It provides the facilities like inserting tables, pivot tables, images, clip art,
charts, links, etc.
3. Page layout: It provides all the facilities related to the spreadsheet-like margins,
orientation, height, width, background etc. The worksheet appearance will be the same in
the hard copy as well.
4. Formulas: It is a package of different in-built formulas/functions which can be used by
user just by selecting the cell or range of cells for values.
5. Data: The Data Tab helps to perform different operations on a vast set of data like
analysis through what-if analysis tools and many other data analysis tools, removing
duplicate data, transpose the row and column, etc. It also helps to access data(s) from
different sources as well, such as from Ms-Access, from web, etc.
6. Review: This tab provides the facility of thesaurus, checking spellings, translating the
text, and helps to protect and share the worksheet and workbook.
7. View: It contains the commands to manage the view of the workbook, show/hide ruler,
gridlines, etc, freezing panes, and adding macros.
Creating a new spreadsheet:
In Excel 3 sheets are already opened by default, now to add a new sheet :
 In the lowermost pane in Excel, you can find a button.
 Click on that button to add a new sheet.

 We can also achieve the same by Right-clicking on the sheet number before which you
want to insert the sheet.
 Click on Insert.
 Select Worksheet.
 Click OK.
Opening previous spreadsheet:
On the lowermost pane in Excel, you can find the name of the current sheet you have opened.
On the left side of this sheet, the name of previous sheets are also available like Sheet 2,
Sheet 3 will be available at the left of sheet4, click on the number/name of the sheet you want
to open and the sheet will open in the same workbook.
For example, we are on Sheet 4, and we want to open Sheet 2 then simply just click on
Sheet2 to open it.
Managing the spreadsheets:
You can easily manage the spreadsheets in Excel simply by :
 Simply navigating between the sheets.
1

 Right-clicking on the sheet name or number on the pane.

 Choose among the various options available like, move, copy, rename, add, delete etc.
 You can move/copy your sheet to other workbooks as well just by selecting the workbook
in the To workbook and the sheet before you want to insert the sheet in Before sheet.

To save the workbook:

1. Click on the Office Button or the File tab.
2. Click on Save As option.
3. Write the desired name of your file.
4. Click OK.
To share your workbook:
1. Click on the Review tab on the Ribbon.
2. Click on the share workbook (under Changes group).
3. If you want to protect your workbook and then make it available for another user then
click on Protect and Share Workbook option.
4. Now check the option “Allow changes by more than one user at the same time. This also
allows workbook merging” in the Share Workbook dialog box.
5. Many other options are also available in the Advanced like track, update changes.
6. Click OK.
Ms-Excel shortcuts:
1. Ctrl+N: To open a new workbook.
2. Ctrl+O: To open a saved workbook.
3. Ctrl+S: To save a workbook.
4. Ctrl+C: To copy the selected cells.
5. Ctrl+V: To paste the copied cells.
6. Ctrl+X: To cut the selected cells.
7. Ctrl+W: To close the workbook.
8. Delete: To remove all the contents from the cell.
9. Ctrl+P: To print the workbook.
10. Ctrl+Z: To undo.

Benefits of Using MS Excel

MS Excel is widely used for various purposes because the data is easy to save, and
information can be added and removed without any discomfort and less hard work.
Given below are a few important benefits of using MS Excel:

 Easy To Store Data: Since there is no limit to the amount of information that can be
saved in a spreadsheet, MS Excel is widely used to save data or to analyse data.
Filtering information in Excel is easy and convenient.
 Easy To Recover Data: If the information is written on a piece of paper, finding it
may take longer, however, this is not the case with excel spreadsheets. Finding and
recovering data is easy.
 Application of Mathematical Formulas: Doing calculations has become easier and
less time-taking with the formulas option in MS excel
 More Secure: These spreadsheets can be password secured in a laptop or personal
computer and the probability of losing them is way lesser in comparison to data
written in registers or piece of paper.
 Data at One Place: Earlier, data was to be kept in different files and registers when
the paperwork was done. Now, this has become convenient as more than one
worksheet can be added in a single MS Excel file.
 Neater and Clearer Visibility of Information: When the data is saved in the form of
a table, analysing it becomes easier. Thus, information is a spreadsheet that is more
readable and understandable.

Applications of Excel

o Data Entry and Storage

o Performing Calculations
o Data Analysis and Interpretation
o Reporting and Visualizations
o Accounting and Budgeting
o Collection and Verification of Business Data
o Calendars and Schedules
o Administrative and Managerial Duties
o Forecasting
o Automating Repetitive Tasks
Tables

Master Excel tables and analyze your data quickly and easily. Learn how to create a table,
sort a table, filter a table, and much more.
Create a Table
To create a table, execute the following steps.
1. Click any single cell inside the data set.

2. On the Insert tab, in the Tables group, click Table (or simply press Ctrl + T).

The Create Table dialog box appears.

3. Excel automatically selects the data for you. Check 'My table has headers' and click on
OK.
Result. Excel creates a nicely formatted table for you. This may still seem like a normal data
range to you but many powerful features are now just a click of a button away.

Sort
To sort by Last Name first and Sales second, execute the following steps.

1. First, click the arrow next to Sales and click Sort Smallest to Largest.

2. Next, click the arrow next to Last Name and click Sort A to Z.

Result.
Filter
To filter a table, execute the following steps.

1. Click the arrow next to Country and only check USA.

Result.

Total Row
To display a total row at the end of the table, execute the following steps.

1. First, select a cell inside the table. Next, on the Table Design tab, in the Table Style
Options group, check Total Row (or simply press Ctrl + Shift + T).
Result.

2. Click any cell in the last row to calculate the Total (Average, Count, Max, Min, Sum etc.)
of a column. For example, calculate the sum of the Sales column.

Note: in the formula bar, see how Excel uses the SUBTOTAL function to calculate the sum.
109 is the argument for Sum if you use the SUBTOTAL function. Excel uses this function
(and not the standard SUM function) to correctly calculate table totals of filtered tables.
Table Name
Each table has a unique name. You can use this name in formulas. If you like, you can edit
the name of a table.
1. First, select a cell inside the table. Next, on the Table Design tab, in the Properties group,
we can see that Table1 is the name of this table.

2. The formula below refers to Table1 and counts the total number of records.

Note: visit our page about structured references to learn more about table formulas.
AutoExpansion
Tables in Excel expand automatically when adding new rows or columns. This is a great
feature.

1. First, select a cell inside the table.

2. Press Ctrl + Shift + T to quickly remove the total row.

3. Select cell A16 and type Brown (Excel automatically formats this new row for you).
CHARTS

Create a chart

1. Select the data for which you want to create a chart.

2. Click INSERT > Recommended Charts.

3. On the Recommended Charts tab, scroll through the list of charts that Excel
recommends for your data, and click any chart to see how your data will look.

If you don’t see a chart you like, click All Charts to see all the available chart types.

4. When you find the chart you like, click it > OK.

5. Use the Chart Elements, Chart Styles, and Chart Filters buttons, next to the upper-
right corner of the chart to add chart elements like axis titles or data labels, customize the
look of your chart, or change the data that is shown in the chart.

Mathematical Formulas in Excel

Mathematical Formulas in Excel are used to perform various arithmetic operations

like sum, average, count, max, min etc. Here is a list of most frequently used
mathematical formulas in excel.

SUM():

This function is used to adds all the values within a cell range.

Syntax:
sum(cell address : cell address)
Example: sum(C1:C3)=15

Here in the example below, we will create a basic function to calculate the sum of
working hours generates in a day.

Select the cell where you want to put the formula, type the equals sign (=) and write
the desired function name or choose the function from the suggested function list.
Here in the example below we write the SUM function.
Now write the range of sum or you can select the range by using the mouse to drag.
Now press Enter key to see the result or press Ctrl+Enter key to stay in the formula
cell. Here is the picture below.

You can use the sum() function in other ways. Here is the syntax.
sum(number1,number2,number3....)

Example: sum(4,5,6)=15

SUMIF():

Here in the example below, we will create a basic function to calculate the sum of
working hours generates in a day only for female employees.

Syntax:
SUMIF( range,criteria)
Type the equals sign and write the desired function in the cell E14. Here is the picture
below.

Press Enter to see the result and move the cell pointer to below cell or press
Ctrl+Enter to stay on the cell.
AVERAGE():

Here in the example below, we will create a basic function to calculate the average
working hours of each employee.
Press Enter key and see the result.
You can use the AVERAGEIF() and AVERAGEIFS() function in a similar way as
SUMIF() function, to average cells based on one or multiple criteria.

COUNT()

Here in the example below, we will create a basic function to calculate the number of
employees.

ROUND():

The round function is used to round a number to a specified number of digits.

Syntax:
ROUND(number, number_of_digits)
RAND():

This function is used to returns a random number greater than or equal to 0 and less
than 1.

Syntax:
RAND()
MOD()

This function is used to find the remainder after dividing a number by another
number.

Syntax:
MOD(number,divisor)

INT():

This function is used to converts a decimal number to integer lower than it.

Syntax:
INT(decimal number)

AVERAGE():

Formula:

This function is used to calculate the average of a range of cells.

Syntax:
AVERAGE(number1,number2,.......)

ABS():

The abs() function is used to return the absolute value of a given number. The number
may be positive or negative. Here is the example below.

ARABIC():

This function is used to convert roman numeral to arabic. This function accepts roman
numeral as an argument. The picture below shows that you can write the formula in
any cell or you can use the function wizard or you can select any cell and write the
formula in the formula bar and press Ctrl+enter to stay the cell or press enter see the
result.
CEILING.MATH():

This function is used to rounds a number upto the nearest integer or to the nearest
multiple significance. This function accepts three arguments, these are number,
significance and mode. Number is a number, significance is the multiple to which you
want to round and mode is also a number. Here in the example below the number is
6.423 and the significance is 3 and the nearest multiple of 3 of the given number is 9
and the mode is a nonzero, so this function starts rounding away from zero.
Basic statistical Function
These are some most common and useful functions. These include the COUNT
function, COUNTA function, COUNTBLANK function, COUNTIFS function. Let’s
discuss one by one:

1. COUNT function

The COUNT function is used to count the number of cells containing a number.
Always remember one thing that it will only count the number.
Formula for COUNT function = COUNT(value1, [value2], …)

Example of statistical function.

Thus, there are 7 textbooks that have a discount out of 9 books.

2. COUNTA function

This function will count everything, it will count the number of the cell containing
any kind of information, including numbers, error values, empty text.
Formula for COUNTA function = COUNT(value1, [value2], …)
 Example of statistical function.

So, there are a total of 9 subjects that being sold in the store

3. COUNTBLANK function

COUNTBLANK function, as the term, suggest it will only count blank or empty
cells.
Formula for COUNTBlANK function = COUNTBLANK(range)

Example of statistical function.

There are 2 subjects that don’t have any discount.

4. COUNTIFS function

COUNTIFS function is the most used function in Excel. The function will work on
one or more than one condition in a given range and counts the cell that meets the
condition.
Formula for COUNTIFS function = COUNTIFS (range1, criteria1, [range2],
[criteria2], ...)
Intermediate Statistical Function
Let’s discuss some intermediate statistical functions in Excel. These functions used
more often by the analyst. It includes functions like AVERAGE function, MEDIAN
function, MODE function, STANDARD DEVIATION function, VARIANCE
function, QUARTILES function, CORRELATION function.

1. AVERAGE value1, [value2], …)

The AVERAGE function is one of the most used intermediate functions. The
function will return the arithmetic mean or an average of the cell in a given range.
Formula for AVERAGE function = AVERAGE(number1, [number2], …)

Example of statistical function.

So the average total revenue is Rs.144326.6667

2. AVERAGEIF function

The function will return the arithmetic mean or an average of the cell in a given
range that meets the given criteria.
Formula for AVERAGEIF function = AVERAGEIF(range, criteria, [average_range])

3. MEDIAN function

The MEDIAN function will return the central value of the data. Its syntax is similar
to the AVERAGE function.
Formula for MEDIAN function = MEDIAN(number1, [number2], …)

Example of statistical function.

Thus, the median quantity sold is 300.

4. MODE function

The MODE function will return the most frequent value of the cell in a given range.
Formula for MODE function = MODE.SNGL(number1,[number2],…)
 Example of statistical function.

Thus, the most frequent or repetitive cost is Rs. 250.

5. STANDARD DEVIATION

This function helps us to determine how much observed value deviated or varied
from the average. This function is one of the useful functions in Excel.
Formula for STANDARD DEVIATION function = STDEV.P(number1,[number2],…)

Example of statistical function.

Thus, Standard Deviation of total revenue =296917.8172

6. VARIANCE function

To understand the VARIANCE function, we first need to know what is variance?

Basically, Variance will determine the degree of variation in your data set. The
more data is spread it means the more is variance.
Formula for VARIANCE function = VAR(number1, [number2], …)

Example of statistical function.

So, the variance of Revenue= 97955766832

7. QUARTILES function

Quartile divides the data into 4 parts just like the median which divides the data into
two equal parts. So, the Excel QUARTILES function returns the quartiles of the
dataset. It can return the minimum value, first quartile, second quartile, third
quartile, and max value. Let’s see the syntax :
Formula for QUARTILES function = QUARTILE (array, quart)
 Example of statistical function.

So, the first quartile = 14137.5

8. CORRELATION function

CORRELATION function, help to find the relationship between the two variables,
this function mostly used by the analyst to study the data. The range of the
CORRELATION coefficient lies between -1 to +1.
Formula for CORRELATION function = CORREL(array1, array2)
 Example of statistical function.

So, the correlation coefficient between discount and revenue of store = 0.802428894.
Since it is a positive number, thus we can conclude discount is positively related to
revenue.

9. MAX function

The MAX function will return the largest numeric value within a given set of data or
an array.
Formula for MAX function = MAX (number1, [number2], ...)

The maximum quantity of textbooks is Physics,620 in numbers.

10. MIN function

The MIN function will return the smallest numeric value within a given set of data
or an array.
Formula for MAX function = MAX (number1, [number2], ...)
The minimum number of the book available in the store =150(Sociology)

11. LARGE function

The LARGE function is similar to the MAX function but the only difference is it
returns the nth largest value within a given set of data or an array.
Formula for LARGE function = LARGE (array, k)
Let’s find the most expensive textbook using a large function, where k = 1

Example of statistical function.

The most expensive textbook is Rs. 420.

12. SMALL function

The SMALL function is similar to the MIN function, but the only difference is it
return nth smallest value within a given set of data or an array.
Formula for SMALL function = SMALL (array, k)
Similarly, using the SMALL function we can find the second least expensive book.

FINANCIAL FUNCTIONS

1. FV Function
FV function returns the future value of an investment using constant
payments and a constant interest rate. In simple words, it will return a
future value of an investment where you have constant payments and a
constant interest rate throughout the investment period.

Syntax
FV(rate,nper,pmt,[pv],[type])
Arguments
 rate: A constant interest rate that you want to use in the calculation.
 nper: Number of payments.
 pmt: A constant payment amount to pay periodically throughout the
investment time.
 [pv]: The present value of future payments. It must be entered as a
negative value. 0 if omitted.
 [type]: A number to specify when payment is due. 0 = at the end of
the period, 1 = at the beginning of the period.
Notes
 If pmt is the cash which you have paid (i.e deposits to saving, etc),
the value must be negative; and if it is the cash received (income,
dividends), the value must be positive.
 Make sure you have a specified rate and number of payments in a
consistent manner. If the rate is for an annual basis then you have to
specify payment periods on an annual basis as well and if you want
to specify payments on a monthly basis you have to convert interest
rate on a monthly basis by dividing by 12. Same for a quarterly and
half-yearly basis.
Example
In the below example, we have used 10% interest rate, 5 payments on a
yearly basis, $1000 payment amount, no PV amount and payment type at
the beginning of the period. And the function has return 6716 in the result.

Let me explain to you the phenomena working behind the FV.

At the beginning of each period, it will calculate the interest on payment

and carry forward that amount (Actual Amount + Interest) to the next
period. And in the next period again the same calculation will be done and
so on. The best part of FV is that it can do this step by step calculation for
you in a single cell.

In the below example, we have used monthly payments.

For this, we have converted the annual interest rate into a month by
dividing by 12 and 60 months instead of 5 years and then, specified 10000
for payment. Note: You can also calculate compound interest with FV.
2. PMT
PMT function returns a periodic payment of loan which you need to pay.
In simple words, it calculates the loan payment based on fixed monthly
payments and a constant rate of interest (loan payment based on fixed
monthly payments and a constant rate of interest).

Syntax
PMT(rate, nper, pv, [fv], [type])
Arguments
 rate: The rate of interest for the loan. This rate of interest should be
constant.
 nper: The total number of payments.
 pv: The present value or the total amount of loan.
 [fv]: The future value or the cash balance which you want after the
last payment. The default value is 0.
 [type]: Use 0 or 1 to specify the due time of payment. You can use 0
when payment is due at the end of each payment or 1 if payment is
due at the start of each period. If you omit to specify the type, it will
assume 0.
Notes
 The amount of payment return by PMT only includes payment and
interest but not include taxes and other fees which are related to the
loan.
 You have to be sure while specifying the value for rate and nper
arguments. If you want to pay monthly installments on a five-year
loan at an annual interest rate of 8 percent, use 8%/12 for rate and
5*12 for nper. For annual payments on the same loan, use 8 percent
for rate and 5 for nper.
Example
Let’s say you want to take a 20 years mortgage loan for $250000 by
assuming 2.5% as an interest rate. Now here we can use PMT to calculate
your monthly installments.

In the above calculation, we have converted the annual interest rate into
monthly by dividing with 12 and years into months by multiplying with
12.

But we have not mentioned any future value, and the payment type is a
default. So as a result, we have got a negative value, because the amount
of $987.80 is what we have to pay every month for 30 years.

3. PV
PV Function returns the present value of a financial investment or a
loan. In simple words, with the PV function you can calculate the present
value of an investment or a loan where you can check is that.
Syntax
PV(rate, nper, pmt, [fv], [type])
Arguments
 rate: The rate of interest for the payment of the loan.
 nper: Total number of payment periods
 pmt: A constant amount of payment you have to make after every
period.
  [FV]: The future value or a cash balance of a loan or investment you
want to attain after the last payment is made. If omitted, it will be
assumed as 0.
 [type]: Time of the payment. Beginning of the period (use “0”) or
the end of the period (Use “1”).
Notes
1. The units you use as arguments should be consistent. For example, If
you are using periods in months (36 Months = 3 Years) then you
have to convert the annual interest rate into a monthly interest rate
(6%/12 = 0.5%).
2. PV function is an annuity function. In annuity functions, the cash
payments by you are represented by negative numbers and the
payments you receive are represented by positive numbers.
Example
Let’s say you want to invest $4000 in an investment plan and in return,
you’ll get $1000 at the end of each year for the next 5 years. That means
you’ll get a total of $5000 in the next 5 years. Now the thing is, you have
to evaluate that this investment is profitable or not. You are investing
$4000 today and the return will come to you in the next 5 years.
In the above calculation, it has returned -4329. The present value of your
investment is $4329 and you are investing $4000 for it. Hence, your
investment is profitable.