Data Validation and Iteration



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Financial Mdeling Data Validatin and Iteratin As analysts are bmbarded with a lt ff data, ne shuld be able t check data veracity. This is where the data validatin functins cme in handy. Few excel functins incrprate pwer f iteratins. Applicatin f these can significantly imprve the tasks ne can d in excel. Cpyright - IMS Prschl Pvt. Ltd.

Data Validatin It prevents invalid data entry in a wrksheet. Select a cell. G t Data tab, Data Tls grup and click Data Validatin. Validatin tl can be selected frm drp dwn list. On selecting the Data Validatin frm the drp dwn list, the dialg bx named Data Validatin appears n the screen. Validatin rule can selected frm the list. 30 Cpyright - IMS Prschl Pvt. Ltd.

Data Validatin-Example In the data furnished belw, there is a limitatin while prjecting the Cmissin/Bnuses. It shuld be whle number and shuld nt be greater than 5000. handle the situatin with Data Validatin. Accunt Actual Prjected Emplyee Csts 110 Payrll 45328 60000 120 IRS/FICA/Wk cmp/state/sdi 15997 25000 140 Retirement Plan 6249 8000 125 Cmmissins/Bnuses 2720 4500 Subttal 70294 97500 Subcntractrs & Services 201 Telecmmunicatin Services 637 700 254 Advertising 40 Subttal 677 700 Ttal 70971 98200 Select a cell. G t Data tab, Data Tls grup and click Data Validatin. Select Data Validatin frm the list. Fill the requirements in the dialg bx. G t Input Message tab and enter sme message. 31 Cpyright - IMS Prschl Pvt. Ltd.

Data Validatin-Example Select a cell. G t Data tab, Data Tls grup and click Data Validatin. Select Data Validatin frm the list. Fill the requirements in the dialg bx. G t Input Message tab and enter sme message. 32 Cpyright - IMS Prschl Pvt. Ltd.

Iteratin Functins Gal Seek Gal Seek wrks n the terms f cause and effect scenaris. It helps a user t see the effect n ne item in the frmula n the ther. This can be used when yu knw the utcme f a frmula but dn t knw ne input in the frmula. Lcatin f Gal Seek G t Data tab, Data Tls grup and click What-if Analysis. Select Gal Seek frm the list. On selecting Gal Seek, a dialg bx similar t ne shwn in right appears n the screen. In Set cell bx we have t fill cell whse value we knw and value f the cell has t filled in next bx i.e. T Value. By changing cell shuld be the cell reference that changes t bring the desired utput. Fllw the example fr better understanding. 33 Cpyright - IMS Prschl Pvt. Ltd.

Gal Seek-Exercise Calculate the EMI t be paid n a lan f Rs.1200 @ 2%/mnth fr 6 mnths. Frmula: =PMT(B3,B5,-B2,0,0) 34 Cpyright - IMS Prschl Pvt. Ltd.

Gal Seek-Exercise Enter the frmula as shwn and cpy the frmula t rest f the cells in the clumn. 35 Cpyright - IMS Prschl Pvt. Ltd.

Gal Seek-Exercise Final Outcme f the exercise. Nte: End f Perid balance becmes zer. 36 Cpyright - IMS Prschl Pvt. Ltd.

Iteratin Functins Scenari Manager A scenari is a named cmbinatin f values that is assigned t ne r mre variable cells in a what-if mdel. Scenaris t frecast the utcme f a wrksheet mdel. Lcatin f Scenari Manager G t Data tab, Data Tls grup and click What-if Analysis. Select Scenari Manager frm the list. On selecting Scenari Manager, a dialg bx similar t ne shwn in right appears n the screen. Fllw the Example fr better understanding 37 Cpyright - IMS Prschl Pvt. Ltd.

Scenari - Exercise The exercise is t see the effect f changes in Retail Price, COGS and/r Unit Seles Grwth Factr n the prfit f the cmpany. 38 Cpyright - IMS Prschl Pvt. Ltd.

Scenari Manager-Exercise Steps: Click Add buttn n the dialg. In the Add Scenari dialg bx (Shwn in image), fill any Scenari name. In Changing cells bx, write, B3:B3,B10. Press Ok. Steps: In the Scenari Values dialg bx, fill the alternative figures fr each f the particulars s as t see the effect f change. Press Ok. 39 Cpyright - IMS Prschl Pvt. Ltd.

Scenari Manager-Exercise Steps: In the Scenari Manager, click Summary buttn. Press Ok. Steps: In the Scenari Summary dialg bx, select Scenari summary radi buttn. Select the Result Cells that shws the effect f change (B15:I15). Press Ok. 40 Cpyright - IMS Prschl Pvt. Ltd.

Scenari Manager-Exercise Final Output 41 Cpyright - IMS Prschl Pvt. Ltd.

Iteratin Functins Data Table A Data Table will shw yu, hw by changing certain values in yur frmulas yu can affect the result f yur frmula. Data Tables can stre the results f many different scenaris in ne table, s that yu can analyse them t select which scenari is yur best ptin. Lcatin f Data Table G t Data tab, Data Tls grup and click What-if Analysis. Select Data Table frm the list. On selecting Data Table, a dialg bx similar t ne shwn in right appears n the screen. Fllw the Example fr better understanding 42 Cpyright - IMS Prschl Pvt. Ltd.

Data Table Exercise Build a Sensitivity Analysis fr revenue grwth and % f sales f margin. Frmula: =N10-N12 Template fr the analysis: 43 Cpyright - IMS Prschl Pvt. Ltd.

Data Table Exercise Template fr the analysis: Reference t the cell that shws the effect f changes in inputs. In this case, Grss prfit f A09 (=N14). Shws sensitivity fr % Grwth f Revenues 44 Shws sensitivity fr Cst Margins Cpyright - IMS Prschl Pvt. Ltd.

Data Table Exercise Steps: 1. Rw input cell (=N8) 2. Clumn input cell (=10) 3. Press OK buttn. Final Output f Data Table: Check: Fr Revenue % Grwth f 15% and Cst Margin f 70%, the Grss prfit is 345. 45 Cpyright - IMS Prschl Pvt. Ltd.

Data Summarizatin Pivt Table It is a data summarizatin tl. It makes easier t arrange and summarize cmplex data fr better analysis. Lcatin f Pivt Table G t Insert tab, Tables grup and click Pivt Table. Select PivtTable frm the list. On selecting Pivt Table, a dialg bx similar t ne shwn in right appears n the screen. Fllw the Example fr better understanding 46 Cpyright - IMS Prschl Pvt. Ltd.

Pivt Table - Exercise Prepare Pivt Table fr the analysis f the fllwing data: 47 Cpyright - IMS Prschl Pvt. Ltd.

Pivt Table - Exercise Steps: 1. Table Range A3:I25. 2. Click radi buttn Existing Wrksheet. (One can use either ptin as per requirement) 3. Lcatin, H7. (Can be changed as per requirement). Click OK. 4. A Pivt Area is created as shwn Steps: 5. Als a PivtTable Field List pens n the right side f wrksheet. If it is nt visible, then right click the Pivt Area and click Shw Field List. 48 Cpyright - IMS Prschl Pvt. Ltd.

Pivt Table - Exercise Steps: 6. Drag and drp the field frm list t areas as shwn in the image in the right. 7. Gives the fllwing utput in the Pivt Area as shwn belw. 49 Cpyright - IMS Prschl Pvt. Ltd.

Pivt Table - Exercise Steps: 8. Clr can be changed as per requirement. The final utput f the pivt table which shws the year wise sale f prducts gegraphically. 50 Cpyright - IMS Prschl Pvt. Ltd.