Workbook Shortcut Keys

In this section, we will understand the basics of operating a workbook. We will learn how
to create a new workbook, open an existing workbook, and save a spreadsheet so that
you don’t lose any data or calculations that you have done. We will then go through how
you can toggle between several different sheets in a workbook.
Description Excel
Shortcuts
1. To create a new workbook Ctrl + N
2. To open an existing workbook Ctrl + O
3. To save a workbook/spreadsheet Ctrl + S
4. To close the current workbook Ctrl + W
5. To close Excel Ctrl + F4
6. To move to the next sheet Ctrl + Page Down
7. To move to the previous sheet Ctrl + Page Up
8. To go to the Data tab Alt + A
9. To go to the View tab Alt + W
10. To go the Formula tab Alt + M
11. To go to home tab Alt +H
12. To go to page layout tab Alt +P
Those were the Excel shortcuts that can help you navigate through your spreadsheet.
Once the workbook creation is done, the next key step is cell formatting.

Cell Formatting Shortcut Keys

A cell in Excel holds all the data that you are working on. Several different shortcuts can
be applied to a cell, such as editing a cell, aligning cell contents, adding a border to a
cell, adding an outline to all the selected cells, and many more. Here is a sneak peek
into these Excel shortcuts.

Description Excel Shortcuts

11. To edit a cell F2
12. To copy and paste cells Ctrl + C, Ctrl + V
13. To italicize and make the font bold Ctrl + I, Ctrl + B
14. To center align cell contents Alt + H + A + C
15. To fill color Alt + H + H
16. To add a border Alt + H + B
17. To remove outline border Ctrl + Shift + _
18. To add an outline to the select cells Ctrl + Shift + &
19. To move to the next cell Tab
20. To move to the previous cell Shift + Tab
21. To select all the cells on the right Ctrl + Shift + Right
arrow
22. To select all the cells on the left Ctrl + Shift + Left
Arrow
23. To select the column from the selected cell to the end of the table Ctrl + Shift +
Down Arrow
24. To select all the cells above the selected cell Ctrl + Shift + Up Arrow
25. To select all the cells below the selected cell Ctrl + Shift + Down
Arrow

Additional and advanced cell formatting Excel shortcuts that might come
handy.
Adding a comment to a cell.
Comments are helpful when giving extra information about cell content.

Description Excel Shortcuts

26. To add a comment to a cell Shift + F2
27. To delete a cell comment Shift + F10 + D
28. To display find and replace Ctrl + H
29. To activate the filter Ctrl + Shift + L, Alt + Down
Arrow
30. To insert the current date Ctrl +;
31. To insert current time Ctrl + Shift +:
32. To insert a hyperlink Ctrl + k
33. To apply the currency format Ctrl + Shift + $
34. To apply the percent format Ctrl + Shift + %
35. To go to the “Tell me what you want to do” box Alt + Q

Row and Column Formatting Shortcut Keys

Critical row and column formatting shortcuts.

We will understand how to delete rows and columns, hide and unhide the selected rows
and columns, and group and ungroup rows and columns.
Description Excel Shortcuts
36. To select the entire row Shift + Space
37. To select the entire column Ctrl + Space
38. To delete a column Alt +H+D+C
39. To delete a row Shift + Space, Ctrl + –
40. To hide selected row Ctrl + 9
41. To unhide selected row Ctrl + Shift + 9
42. To hide a selected column Ctrl + 0
43. To unhide a selected column Ctrl + Shift + 0
44. To group rows or columns Alt + Shift + Right arrow
45. To ungroup rows or columns Alt + Shift + Left arrow

Pivot Table Shortcut Keys

First, let’s create a pivot table using a sales dataset.
Fig: Pivot table using sales data

Description Excel Shortcuts

46. To group pivot table items Alt + Shift + Right arrow
47. To ungroup pivot table items Alt + Shift + Left arrow
48. To hide pivot table items Ctrl + –
49. To create a pivot chart on the same sheet Alt + F1
50. To create a pivot chart on a new worksheet F11

1.2 Conducting Data Analysis

1.2.1 Data Tables

What are Data Tables

Data tables are used in Excel to display a range of outputs given a range of different
inputs. They are commonly used in financial modeling and analysis to assess a range of
different possibilities for a company, given uncertainty about what will happen in the
future.
How to Create Excel Data Tables
Below is a step-by-step guide on how to create an Excel data table. In the example, we
will look at how much operating profit a company will generate based on different
product prices and different sales volumes. We have built a simple model that assumes
one variable cost (cost of goods sold), and one fixed cost (general and administrative
expenses).
Step 1: Create a Model
The first step when creating data tables is to have a model in place. We’ve made a
simple model that includes two key assumptions: unit price and unit volume. From
there, we have a simple income statement that includes revenue, COGS, G&A, and
operating profit (EBIT).

Step 2: Link the Output

Since profit is what we want to use as the output, we simply take an empty cell in the
model and link it to net income at the start of the data table (the top left corner).

Step 3: Enter the Input Values

Once net income is linked, we need to enter the different values we want to test for unit
prices and unit volumes. To do it, we manually enter the values across the top and left
sides of the table. In this case, we will enter unit prices from $40 to $60 and volumes
from 700 to 1,300.
Step 4: Highlight the Cells and Access the Data Tables
Function
With the structure of the table complete, the next step is to highlight all the cells with
data that will be used to form the table, and then access the Excel data tables function
under the Data ribbon and What-If analysis.
The keyboard shortcut on Windows is Alt, A, W, T.

Step 5: Link the Input Values

This can be one of the trickiest steps when setting up data tables. Financial
analysts often aren’t sure where the Row Input Cell goes and where the Column Input
Cell goes. The easiest way to think about it that the Row refers to the assumptions
across the top of the table, and the Column refers to the assumptions across the left of
the table. So, link each of them to the hard-coded assumptions that drive the model.
Step 6: Format the Data Table Output
Once the table is linked, it can be helpful to do some basic formatting so that the data
table is easier to read. This includes adding borders and labels, so users can easily see
the information contained in the analysis.
Goal Seek
What if you want to know how many books you need to sell for the highest price, to
obtain a total profit of exactly $4700? You can use Excel’s Goal Seek feature to find
the answer.
1. On the Data tab, in the Forecast group, click What-If Analysis.

2. Click Goal Seek.

The Goal Seek dialog box appears.

3. Select cell D10.
4. Click in the ‘To value’ box and type 4700.
5. Click in the ‘By changing cell’ box and select cell C4.
6. Click OK.

Result. You need to sell 90% of the books for the highest price to obtain a total profit of
exactly $4700.
PIVOT TABLES
What is a Pivot Table in Excel?
A pivot table allows you to organize, sort, manage and analyze large data sets in a
dynamic way. Pivot tables are one of Excel’s most powerful data analysis tools, used
extensively by financial analysts around the world. In a pivot table, Excel essentially
runs a database behind the scenes, allowing you to easily manipulate large amounts of
information.
How to Use a Pivot Table in Excel
Below is a step by step guide of how to insert a pivot table in Excel:
1. Organize the data
The first step is to ensure you have well-organized data that can easily be turned into a
dynamic table. This means ensuring that all data is in the proper rows and columns. If
data is not properly organized, then the table will not work properly. Ensure that the
categories (category names) are located in the top row of the dataset, as shown in the
screenshot below.
2. Insert the pivot table
In step two, you select the data you want to include in the table and then, on the Insert
Tab on the Excel ribbon, locate the tables Group and select Pivot Table, as shown in the
screenshot below.
When the dialog box comes up, ensure the right data are selected and then decide if
you want the table to be inserted as a new worksheet, or located somewhere on the
current worksheet. This is entirely up to you and your personal preference.

3. Setup the pivot table fields

Once you’ve completed step two, the “PivotTable Fields” box will appear. This is where
you set the fields by dragging and dropping the options that are listed as available
fields. You can also use the tick boxes next to the fields to select the items you want to
see in the table.
4. Sort the table
Now that the basic pivot table is in place, you can sort the information by multiple
criteria, such as name, value, count, or other things.
To sort the date, click on the autosort button (highlighted in the image below) and then
click “more sort options” to pick from the various criteria you can sort by.
Another option is to right-click anywhere in the table and then select Sort, and then
“more sort options”.
5. Filter the data
Adding a filter is a great way of sorting the data very easily. In the above example, we
showed how to sort, but now with the filter function, we can see the data for specific
sub-sections with the click of a button.
In the image below you can see how, by dragging the “channel” category from the list
of options down to the Filters section, all of a sudden an extra box appears at the top of
the pivot table that says “channel”, indicating the filter has been added.
Next, we can click on the filter button and select the filters we want to apply (as shown
below).
After this step is completed, we can see the revenue, shipping, and marketing spending
for all products that were sold via the Instagram channel, for example.
More filters can be added to the pivot table as required.
6. Edit the data values (calculations)
The default in Excel pivot tables is that all data is shown as the sum of whatever is
being displayed in the table. For example, in this table, we see the sum of all revenues
by category, the sum of all shipping expenses by category, and the sum of all marketing
expenses by category.
To change from showing the sum of all revenues to the “count” of all revenue we can
determine how many items were sold. This may be useful for reporting purposes. To
do this, right-click on the data you wish the change the value of and select “Value field
settings” which will open the box you see in the screenshot below.

In accounting and financial analysis, this is a very important feature, as it’s often
necessary to move back and forth between units/volume (the count function) and total
cost or revenue (the sum function).
7. Adding an extra dimension to the pivot table
At this point, we only have one category in the rows and one in the columns (the
values). It may be necessary, however, to add an extra dimension. A brief warning,
however, that this could significantly increase the size of your table.
In order to do this, click on the table so that the “fields” box pops up and drag an extra
category, such as “dates”, into the columns box. This will subdivide each column
heading into additional columns for each date contained in the data set.
In the example below, you can see how the extra dates dimension has been added to
the columns to provide much more data in the pivot table.
Using advanced formulas and
functions to enhance the
functionality of financial models
Excel Functions for Finance
Here are the top 10 most important functions and formulas you need to know, plain and
simple. Follow this guide and you’ll be ready to tackle any financial problems in Excel.
It should be noted that while each of these formulas and functions are useful
independently, they can also be used in combinations that make them even more
powerful. We will point out these combinations wherever possible.
XNPV
Formula: =XNPV(discount_rate, cash_flows, dates)
The number one formula in Excel for finance professionals has to be XNPV. Any
valuation analysis aimed at determining what a company is worth will need to
determine the Net Present Value (NPV) of a series of cash flows.
Unlike the regular NPV function in Excel, XNPV takes into account specific dates for cash
flows and is, therefore, much more useful and precise.
To learn more, check our free Excel Crash course.
XIRR
Formula: =XIRR(cash flows, dates)
Closely related to XNPV, another important function is XIRR, which determines the
internal rate of return for a series of cash flows, given specific dates.
XIRR should always be used over the regular IRR formula, as the time periods between
cash flows are very unlikely to all be exactly the same.
To learn more, see our guide comparing XIRR vs IRR in Excel.

MIRR
Formula: =MIRR(cash flows, cost of borrowing, reinvestment rate)
Here is another variation of the internal rate of return that’s very important for finance
professionals. The M stands for Modified, and this formula is particularly useful if the
cash from one investment is invested in a different investment.
For example, imagine if the cash flow from a private business is then invested in
government bonds.
If the business is high returning and produces an 18% IRR, but the cash along the way is
reinvested in a bond at only 8%, the combined IRR will be much lower than 18% (it will
be 15%, as shown in the example below).
Below is an Example of MIRR in action.

PMT
Formula: =PMT(rate, number of periods, present value)
This is a very common function in Excel for finance professionals working with real
estate financial modeling. The formula is most easily thought of as a mortgage
payment calculator.
Given an interest rate, and a number of time periods (years, months, etc.) and the total
value of the loan (e.g., mortgage) you can easily figure out how much the payments will
be.
Remember this produces the total payment, which includes both principal and interest.
See an example below that shows what the annual and monthly payments will be for a
$1 million mortgage with a 30-year term and a 4.5% interest rate.
IPMT
Formula: = IPMT(rate, current period #, total # of periods, present value)
IPMT calculates the interest portion of a fixed debt payment. This Excel function works
very well in conjunction with the PMT function above. By separating out the interest
payments in each period, we can then arrive at the principal payments in each period
by taking the difference of PMT and IMPT.
In the example below, we can see that the interest payment in year 5 is $41,844 on a
30-year loan with a 4.5% interest rate.
EFFECT
Formula: =EFFECT(interest rate, # of periods per year)
This finance function in Excel returns the effective annual interest rate for non-annual
compounding. This is a very important function in Excel for finance professionals,
particularly those involved with lending or borrowing.
For example, a 20.0% annual interest rate (APR) that compounds monthly is actually a
21.94% effective annual interest rate.
See a detailed example of this Excel function below.
DB
Formula: =DB(cost, salvage value, life/# of periods, current period)
This is a great Excel function for accountants and finance professionals. If you want to
avoid building a large Declining Balance (DB) depreciation schedule, Excel can calculate
your depreciation expense in each period with this formula.
Below is an example of how to use this formula to determine DB depreciation.
RATE
Formula: =RATE(# of periods, coupon payment per period, price of bond, face value of
bond, type)
The RATE function can be used to calculate the Yield to Maturity for a security. This is
useful when determining the average annual rate of return that is earned from buying a
bond.

FV
Formula: =FV(rate, # of periods, payments, starting value, type)
This function is great if you want to know how much money you will have in the future,
given a starting balance, regular payments, and a compounding interest rate.
In the example below, you will see what happens to $25 million if it’s grown at 4.5%
annually for 30 years and receives $1 million per year in additions to the total balance.
The result is $154.6 million.
To learn more, check out our Advanced Excel Formulas Course.
SLOPE
Formula: =SLOPE(dependent variable, independent variable)
Finance professionals often have to calculate the Beta (volatility) of a stock when
performing valuation analysis and financial modeling. While you can grab a stock’s
Beta from Bloomberg or from CapIQ, it’s often the best practice to build the analysis
yourself in Excel.
The slope function in Excel allows you to easily calculate Beta, given the weekly returns
for a stock and the index you wish to compare it to.
The example below shows exactly how to calculate beta in Excel for financial analysis.
INDEX MATCH
Formula: =INDEX(C3:E9,MATCH(B13,C3:C9,0),MATCH(B14,C3:E3,0))
This is an advanced alternative to the VLOOKUP or HLOOKUP formulas (which have
several drawbacks and limitations). INDEX MATCH[1] is a powerful combination of Excel
formulas that will take your financial analysis and financial modeling to the next level.
INDEX[2] returns the value of a cell in a table based on the column and row number.
MATCH[3] returns the position of a cell in a row or column.
Here is an example of the INDEX and MATCH formulas combined together. In this
example, we look up and return a person’s height based on their name. Since name
and height are both variables in the formula, we can change both of them!
IF combined with AND / OR
Formula: =IF(AND(C2>=C4,C2<=C5),C6,C7)
Anyone who’s spent a great deal of time doing various types of financial models knows
that nested IF formulas can be a nightmare. Combining IF with the AND or the OR
function can be a great way to keep formulas easier to audit and easier for other users
to understand. In the example below, you will see how we used the individual functions
in combination to create a more advanced formula.

OFFSET combined with SUM or AVERAGE

Formula: =SUM(B4:OFFSET(B4,0,E2-1))
The OFFSET function on its own is not particularly advanced, but when we combine it
with other functions like SUM or AVERAGE we can create a pretty sophisticated
formula. Suppose you want to create a dynamic function that can sum a variable
number of cells. With the regular SUM formula, you are limited to a static calculation,
but by adding OFFSET you can have the cell reference move around.
How it works: To make this formula work, we substitute the ending reference cell of the
SUM function with the OFFSET function. This makes the formula dynamic and the cell
referenced as E2 is where you can tell Excel how many consecutive cells you want to
add up. Now we’ve got some advanced Excel formulas!
Below is a screenshot of this slightly more sophisticated formula in action.

As you see, the SUM formula starts in cell B4, but it ends with a variable, which is the
OFFSET formula starting at B4 and continuing by the value in E2 (“3”), minus one. This
moves the end of the sum formula over 2 cells, summing 3 years of data (including the
starting point). As you can see in cell F7, the sum of cells B4:D4 is 15, which is what the
offset and sum formula gives us.
CHOOSE
Formula: =CHOOSE(choice, option1, option2, option3)
The CHOOSE function is great for scenario analysis in financial modeling. It allows you
to pick between a specific number of options, and return the “choice” that you’ve
selected. For example, imagine you have three different assumptions for revenue
growth next year: 5%, 12%, and 18%. Using the CHOOSE formula you can return 12% if
you tell Excel you want choice #2.
Read more about scenario analysis in Excel.
To see a video demonstration, check out our Advanced Excel Formulas Course.
XNPV and XIRR
Formula: =XNPV(discount rate, cash flows, dates)
If you’re an analyst working in investment banking, equity research, financial planning
& analysis (FP&A), or any other area of corporate finance that requires discounting cash
flows, then these formulas are a lifesaver!
Simply put, XNPV and XIRR allow you to apply specific dates to each individual cash flow
that’s being discounted. The problem with Excel’s basic NPV and IRR formulas is that
they assume the time periods between cash flow are equal. Routinely, as an analyst,
you’ll have situations where cash flows are not timed evenly, and this formula is how
you fix that.

For a more detailed breakdown, see our free IRR vs XIRR formulas guide as well as
our XNPV guide.
SUMIF and COUNTIF
Formula: =COUNTIF(D5:D12,”>=21″)
These two advanced formulas are great uses of conditional functions. SUMIF adds all
cells that meet certain criteria, and COUNTIF counts all cells that meet certain criteria.
For example, imagine you want to count all cells that are greater than or equal to 21
(the legal drinking age in the U.S.) to find out how many bottles of champagne you need
for a client event. You can use COUNTIF as an advanced solution, as shown in the
screenshot below.

In our advanced Excel course, we break these formulas down in even more detail.
PMT and IPMT
Formula: =PMT(interest rate, # of periods, present value)
If you work in commercial banking, real estate, FP&A or any financial analyst position
that deals with debt schedules, you’ll want to understand these two detailed formulas.
The PMT formula gives you the value of equal payments over the life of a loan. You can
use it in conjunction with IPMT (which tells you the interest payments for the same type
of loan), then separate principal and interest payments.
Here is an example of how to use the PMT function to get the monthly mortgage
payment for a $1 million mortgage at 5% for 30 years.
LEN and TRIM
Formulas: =LEN(text) and =TRIM(text)
The above formulas are a little less common, but certainly very sophisticated ones.
They are great for financial analysts who need to organize and manipulate large
amounts of data. Unfortunately, the data we get is not always perfectly organized and
sometimes, there can be issues like extra spaces at the beginning or end of cells.
The LEN formula returns a given text string as the number of characters, which is useful
when you want to count how many characters there are in some text.
In the example below, you can see how the TRIM formula cleans up the Excel data.

CONCATENATE
Formula: =A1&” more text”
Concatenate is not really a function on its own – it’s just an innovative way of joining
information from different cells and making worksheets more dynamic. This is a very
powerful tool for financial analysts performing financial modeling (see our free financial
modeling guide to learn more).
In the example below, you can see how the text “New York” plus “, “ is joined with “NY”
to create “New York, NY”. This allows you to create dynamic headers and labels in
worksheets. Now, instead of updating cell B8 directly, you can update cells B2 and D2
independently. With a large data set, this is a valuable skill to have at your disposal.

10. CELL, LEFT, MID and RIGHT functions

These advanced Excel functions can be combined to create some very advanced and
complex formulas to use. The CELL function can return a variety of information about
the contents of a cell (such as its name, location, row, column, and more). The LEFT
function can return text from the beginning of a cell (left to right), MID returns text from
any start point of the cell (left to right), and RIGHT returns text from the end of the cell
(right to left).
Below is an illustration of the three formulas in action.

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