Module No.

04:
MICROSOFT EXCEL IN BUSINESS

Introduction to MS Excel
Microsoft Excel enables users to format, organize and calculate data in a spreadsheet. By
organizing data using software like Excel, data analysts and other users can make information
easier to view as data is added or changed. Excel contains a large number of boxes called
cells that are ordered in rows and columns.
a software program created by Microsoft that uses spreadsheets to organize numbers and data
with formulas and functions. Excel analysis is ubiquitous around the world and used by
businesses of all sizes to perform financial analysis.

MS Excel

Features of MS Excel
1. Pivot
A pivot table is a statistics tool that summarizes and reorganizes selected
columns and rows of data in a spreadsheet or database table to obtain a desired report.
The tool does not actually change the spreadsheet or database itself, it simply “pivots”
or turns the data to view it from different perspectives.
2. Filtering
A filter in Excel is a function that allows you to sort data within a file. A filter
takes the data from a range of cells and outputs an array of data that matches the

SPC (ITB, BBA, Final year) PM

 applied filter. Filters are an automated process that can refine a list, table or
spreadsheet based on single or multiple criteria.
3. Conditional formatting
Conditional formatting makes it easy to highlight certain values or make
particular cells easy to identify. This change the appearance of a cell range based on a
condition (or criteria). You can use conditional formatting to highlight cells that
contain values which meet a certain condition.
4. Formulas
In Microsoft Excel, a formula is an expression that operates on values in a
range of cells. These formulas return a result, even when it is an error. Excel formulas
enable you to perform calculations such as addition, subtraction, multiplication, and
division.
5. Macros
There are several ways to run a macro in Microsoft Excel. A macro is an action or a
set of actions that you can use to automate tasks. Macros are recorded in the Visual
Basic for Applications programming language.
6. Charts
Charts display data in a graphical format that can help you and your audience
visualize relationships between data. When you create a chart, you can select from
many chart types (for example, a stacked column chart or a 3-D exploded pie chart).

Cell Reference
A cell reference refers to a cell or a range of cells on a worksheet and can be used in a
formula so that Microsoft Office Excel can find the values or data that you want that formula
to calculate.

Format Cells
Cell formats allow you to only change the way cell data appears in the spreadsheet. It
is important to keep in mind that it only alters the way the data is presented, and does not
change the value of the data. The formatting options allow for monetary units, scientific
options, dates, times, fractions, and more.

SPC (ITB, BBA, Final year) PM

Data Validation
In Excel, Data Validation is a powerful tool that can be used to restrict data entry to certain
cells, guide users on valid input, and display error messages when invalid data is entered.
Here’s how you can use it:

1. Restrict Data Entry to Certain Cells:

o Select the cell(s) where you want to restrict the input.
o Go to the Data tab on the Ribbon.
o Click on Data Validation in the Data Tools group.
o In the Data Validation dialog box, under the Settings tab, you can define the
type of data allowed (e.g., whole numbers, decimals, dates, or text).
o For example, you can set a rule that only allows numbers between 1 and 100
by selecting "Whole number" from the drop-down and entering 1 as the
minimum and 100 as the maximum.
2. Prompt Users with Input Messages:
o Go to the Input Message tab in the Data Validation dialog box.
o Check the box for Show input message when cell is selected.
o Type a message that will appear when the user selects the cell (e.g., "Please
enter a number between 1 and 100").
3. Display Error Messages:
o Go to the Error Alert tab in the Data Validation dialog box.
o Check the box for Show error alert after invalid data is entered.
o Enter an error message that will appear if the user tries to input invalid data
(e.g., "Invalid entry! Please enter a value between 1 and 100").
o You can also choose the style of the error message (Stop, Warning, or
Information).

These features help ensure that users enter data in a controlled, accurate way.

Protecting Sheets
With worksheet protection, you can make only certain parts of the sheet editable and users
will not be able to modify data in any other region in the sheet. Important: Worksheet level
protection isn't intended as a security feature. It simply prevents users from modifying locked
cells within the worksheet.

SPC (ITB, BBA, Final year) PM

Data Analysis in Excel
Analyze Data in Excel for the web helps you gain insights into your data through high-level
visual summaries, trends, and patterns. Select a cell in a data range. Select Home > Analyze
Data. The Analyze Data pane will appear and show different visual and analysis types, such
as: Rank.
1. Sort
Sorting in Excel is the process of rearranging data within a worksheet or table
based on certain criteria, such as numerical order, alphabetical order, date order, or
custom criteria. Let us read more about it in this blog. Excel's SORT function is useful
for sorting data based on different criteria.
2. Filter
A filter in Excel is a function that allows you to sort data within a file. A filter
takes the data from a range of cells and outputs an array of data that matches the
applied filter. Filters are an automated process that can refine a list, table or
spreadsheet based on single or multiple criteria.
3. Conditional Formatting
Conditional formatting is a tool that changes the appearance of cells based
on specified conditions, such as numerical values or text. It helps visually highlight
important data points, making it easier to analyze and interpret information.
4. Preparing Charts
An Excel chart or graph is a graphical representation of data from a
Microsoft Excel worksheet. It transforms numerical information into visual formats,
making it easier to identify trends, compare data, uncover patterns, and gain insights.
Excel offers a wide variety of chart types, including bar charts, line charts, and pie
charts, allowing users to choose the best format for their analysis needs.
5. Pivot Table
A PivotTable is a powerful tool to calculate, summarize, and analyze data that
lets you see comparisons, patterns, and trends in your data. PivotTables work a little
bit differently depending on what platform you are using to run Excel.

What if Analysis
What-If Analysis is a process in Excel that allows you to change the values in specific cells to
observe how those changes will impact the results of formulas or calculations in the
worksheet. This tool helps you explore different scenarios and make data-driven decisions by

SPC (ITB, BBA, Final year) PM

evaluating how varying input values affect outcomes, without permanently altering the
original data.
1. Goal Seek
Goal Seeking is a process used to determine the input value needed to achieve
a desired output in a formula. In Excel, this tool helps you find the specific value
required in a cell (input) to reach a target result (output) in a related formula. For
example, you might know the target sales revenue and want to calculate the required
number of units to sell, given a known price per unit. Excel's Goal Seek function
automates this process by adjusting the input until the output matches the target. This
technique is useful for solving problems where the desired result is clear, but the
necessary inputs are unknown.

To use Goal Seek in Excel:

1. Select the cell with the formula you want to solve.

2. Go to the Data tab on the Ribbon.
3. Click on What-If Analysis, then choose Goal Seek.
4. In the Goal Seek dialog:
o Set the Target Value (the value you want the formula to reach).
o Specify the Input Cell (the cell that will be adjusted to meet the target).
5. Click OK to run Goal Seek and find the required input value.

2. Scenario Manager
Scenario Manager in Excel is a tool that allows users to create and manage
multiple sets of input values (scenarios) to analyze how changes in those values

SPC (ITB, BBA, Final year) PM

 impact the results of formulas or calculations in a worksheet. It enables users to store
different versions of data within the same cells and easily switch between these
versions to compare outcomes across different business situations or scenarios.
For example, you might create scenarios for a budget with different assumptions (e.g.,
high, medium, and low sales growth) and see how each scenario affects profit or
expenses. Scenario Manager is particularly useful for decision-making and planning,
as it lets you quickly evaluate different "what-if" situations without manually
changing the data every time.

To view a Scenario Summary in Excel:

1. Click the Data tab.

2. Click the What-If Analysis button.
3. Select Scenario Manager.
4. In the Scenario Manager dialog box, click Summary.
5. In the Scenario Summary dialog box, ensure the Scenario summary option is
selected.
6. Click OK to generate the summary.

Financial Functions
Financial functions in Excel are a set of predefined formulas designed to perform specific
financial calculations. These functions help finance professionals and analysts to efficiently
analyze financial data, make investment decisions, and manage financial models. They can be

SPC (ITB, BBA, Final year) PM

used for tasks such as calculating interest rates, determining loan payment schedules,
evaluating investment returns, and assessing risk.
1. NPV
The NPV Function in Excel is a built-in financial function that calculates the
Net Present Value (NPV) of a series of cash flows, given a specified discount rate.

It is a critical tool for evaluating investments or projects, as it incorporates the Time

Value of Money (TVM), which reflects the principle that money today is worth more
than the same amount in the future due to factors like inflation, opportunity cost, and
risk.
2. PMT
The PMT function in Excel is a financial function used to calculate the
payment required for a loan, assuming constant payments and a constant interest rate.

This function is typically used to determine monthly payments for loans such as
mortgages, car loans, or personal loans.

SPC (ITB, BBA, Final year) PM

3. PV
The PV Function in Excel is a financial tool used to calculate the present value
of a loan or investment, which represents the current worth of future cash flows,
discounted at a specified interest rate. It is commonly used in financial analysis to
determine the value today of a series of future payments or receipts.
4. FV
The FV (Future Value) Function in Excel is a financial function used to
calculate the future value of a series of cash flows, given a constant interest rate over
a specified number of periods. It helps determine how much a series of regular
payments or a lump sum investment will be worth at a future date.
5. Rate
The RATE Function in Excel is a financial function used to calculate the
interest rate for a loan or the rate of return required to reach a specific investment goal
over a set period. It is commonly used in financial analysis to determine the interest
rate on loans, mortgages, or to evaluate the performance of investments.
6. IRR
The IRR (Internal Rate of Return) Function in Excel is used to calculate the
rate of return at which the net present value (NPV) of a series of cash flows (payments
and receipts) equals zero. Essentially, it helps determine the profitability of an
investment by finding the discount rate that makes the present value of all cash flows
(both inflows and outflows) equal.
7. DB
The DB Function in Excel is used to calculate the depreciation of an asset
using the Declining Balance Method. Specifically, it applies the Fixed Declining
Balance Method, which depreciates the asset by a fixed percentage each period based
on its book value at the beginning of the period. This method results in higher
depreciation costs in the earlier years and lower costs in later years, reflecting the
asset's decreasing value over time.
8. SLN
The SLN Function in Excel is used to calculate the straight-line depreciation
of a fixed asset over a specified period. This method allocates an equal amount of
depreciation expense each year over the asset's useful life. It is commonly used in
financial modeling, especially for budgeting and projecting the depreciation of assets
in scenarios where the asset's value declines evenly over time.

SPC (ITB, BBA, Final year) PM

 9. SYD
The SYD Function in Excel is a financial function used to calculate the
depreciation of an asset using the Sum-of-Years' Digits (SYD) Method. This method
accelerates depreciation, with larger depreciation amounts recognized in the earlier
years of an asset's useful life and smaller amounts in the later years. The SYD
function is useful when an asset is expected to lose more value in its earlier years.

Logical Functions
Logical functions in Excel are built-in formulas that evaluate conditions or expressions and
return results based on whether those conditions are true or false. These functions allow you
to perform decision-making processes in your worksheets by testing specific criteria.
1. IF
The IF function in Excel is a logical function that allows you to perform a
comparison between a value and a condition, returning one result if the condition is
True, and another result if the condition is False.

It is commonly used for decision-making and testing criteria within a spreadsheet.

2. OR
The OR function in Excel is a logical function that evaluates multiple conditions
and returns TRUE if at least one of the conditions is true, and FALSE if all conditions
are false. It's useful when you need to check if any of several conditions are met.
3. AND
The AND function in Excel is a logical function that evaluates multiple
conditions and returns TRUE only if all of the conditions are true. If at least one

SPC (ITB, BBA, Final year) PM

 condition is false, the function returns FALSE. It's useful when you need to check if
multiple criteria are met simultaneously.

Lookup Functions
Lookup functions in Excel are used to search for a specific value in a data set, typically
within a row or column, and return a corresponding value from another row or column. These
functions are particularly useful when you need to find data in large tables or across multiple
worksheets, streamlining data analysis and reporting.
1. VLOOKUP
VLOOKUP in Excel is a function that searches for a value in the first column
of a table or range and returns a corresponding value from a specified column in the
same row. The "V" stands for Vertical, meaning it searches vertically within the table.

It is commonly used to look up and retrieve data from large datasets or tables based
on a specific lookup value.
2. HLOOKUP
HLOOKUP stands for Horizontal Lookup and is used to search for a value in
the first row of a table, then return a corresponding value from a specified column in
the matching row.

SPC (ITB, BBA, Final year) PM

Unlike VLOOKUP, which searches vertically in a column, HLOOKUP searches horizontally
across rows.

Mathematical Functions
Mathematical functions in Excel are fundamental tools that allow you to perform a wide
range of calculations, such as summing values, calculating averages, and performing other
basic arithmetic operations. These functions are essential for data analysis and include
operations like addition, subtraction, multiplication, division, and more advanced
calculations.

SPC (ITB, BBA, Final year) PM

In simple words, a function is a relationship between inputs where each input is related to
exactly one output. Every function has a domain and codomain or range. A function is
generally denoted by f(x) where x is the input. The general representation of a function is y =
f(x).

Basic Functions
Microsoft Excel allows users to format, organize, and calculate data in a spreadsheet. It uses
cells arranged in rows and columns to help data analysts and others manage information
efficiently, making it easier to view and update as data changes.

SPC (ITB, BBA, Final year) PM

Microsoft Excel offers a variety of functions that simplify tasks and eliminate the need for
manual calculations. Here are 12 simple but useful functions to get you started:

1. SUM: Adds numbers in selected cells. Example: =SUM(A2:A10).

2. AVERAGE: Calculates the average of a range of numbers. Example:
=AVERAGE(A2:A10).
3. MIN and MAX: Finds the smallest (MIN) or largest (MAX) value in a range of
cells. Example: =MIN(B2:B10) or =MAX(B2:B10).
4. MEDIAN: Finds the middle value in a range of numbers. Example:
=MEDIAN(A2:A10).
5. COUNT: Counts the number of cells that contain numbers in a range. Example:
=COUNT(A1:B10).
6. NOW: Displays the current date and time. Example: =NOW().
7. ROUND: Rounds a number to a specific number of decimal places. Example:
=ROUND(2.25,1).
8. TRUNC: Truncates a number by removing the fractional part. Example:
=TRUNC(7.2).
9. PRODUCT: Multiplies values in selected cells. Example: =PRODUCT(A2:A10).
10. COLUMN and ROW: Returns the column or row number of a specific cell.
Example: =ROW(C5).
11. TRIM: Removes extra spaces from text. Example: =TRIM(A1).
12. LEN: Counts the number of characters in a text string. Example: =LEN(A1).

These functions help users perform common tasks more easily, making data analysis and
management in Excel more efficient.

Text Functions
The TEXT function in Excel allows you to format numbers as text by applying custom
formatting codes. This is useful when you want to display numbers in a specific way, such as
with currency symbols, percentages, or specific date and time formats. It can also be used to
combine numbers with text or symbols, making your data presentation more readable and
organized.

SPC (ITB, BBA, Final year) PM

The TEXT function in Excel allows you to change the way a number is displayed by applying
specific formatting to it using format codes. This function is particularly useful when you
want to make numbers more readable, such as formatting dates, currency, or percentages, or
when you need to combine numbers with text or symbols in a single cell.

SPC (ITB, BBA, Final year) PM