Instructions for Operation of Excel
Sensitivity and Scenario Analysis
Used in the Course
Introduction
This file provides instructions on various excel techniques
and macros. The excel functions and macros described are
related to financial modeling applications. Practical step by
step instructions are provided and helpful hints from actual
applications are emphasized.
There are a number of excel files that go with the discussion
of each subject. These exercises are in the “excel
exercises” folder of your CD.
As explained on the next slide, if you would like to find a
particular subject, use the CNTL, F key.
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Finding things in the Manual
To Find Item us
CNTL F
For example, if
you would like to
find discussion of
how to add sheets
in macros, look for
the word “sheets”:
Use CNTL F
Type sheets
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Creating a Scenario Analysis
The data tables described above does not
allow you to adjust a series of variables
and present a series of outputs. You can
create an effective scenario analysis using
the following excel tools:
-The index command
-Data tables
-Combo Box
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Step by Step Process for A Scenario
Analysis
The following step by step process can be used to
develop a scenario analysis:
1. Type in input data for multiple cases
2. Select output variables and place a link to the variables to
the right and above the input data
3. Type row numbers for each case and then type a row
number for case selection
4. Use the index command to select the appropriate scenario
5. Link INPUT variables in the model sheet to the result of the
INDEX command above
6. Create a DATA TABLE using the scenario row as the
COLUMN INDEX
7. Present the scenario analysis with a COMBO box and a
graph
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Step 1: Inputting Data
The first step is inputting data in a set of
rows with each row corresponding to a
scenario. First enter the case number and
then input variables corresponding to each
case.
Other than the
scenario name
each item is
simply input
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Step 2: Select Output Variables
In second step select a
series of output
variables.
The output variables
must be one row above
and one column to the
right of the data inputs.
The output variables
can be a series of
income or cash flow
variables for each year
of the model.
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Here, each output variable
comes from the financial
model
7
Step 3: Input a Scenario Number
The next step is to enter a row
number that will be used to select the
scenario. To begin simply type in a
row number somewhere in the sheet.
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Step 4: Use the Index Function to Select
the Scenario
Use the index function and select only one column.
Use column series and fix the row number as follows
when entering the index command.
INDEX(Column series,Fixed Row #)
The index command selects the entire
row number for the row number
selected
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Step 5: Link the Input Variables to the
Index Row
This may be the most
confusing part of the
process. You should
go to the model and
then put an = sign in
the input variables that
links to the index row
of the scenario table
Link the input variable to the scenario
sheet
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Check of Analysis After Step 5
To make sure the analysis is working,
change the row number that you input
and the variables should change.
This is illustrated below
When you change the
row number, all of the
output variables should
change after you linked
the variables
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Step 6a: Type in the Row Numbers to
Set-up the Data Table
In the next step, you should manually type in
the row numbers in the column to the right of
the input data. This will allow you to make a
data table that uses the row number as the
column input.
Type in the row number of the
scenario between the input and the
output parts
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Step 6: Create a Data Table
In this step, shade
the area that
includes the row
numbers and all of
the output
variables. Then
use the data, table
menu and enter
the row number
as the column
input as shown
below.
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The column number for the data
table is the row number input
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Completed Scenario Analysis
The table below illustrates the
scenario analysis where the inputs is
shown next to the output
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Making a Graph with Scenario Analysis
To make a graph with scenario analysis,
follow the following steps:
1 Shade the first two rows and make a
graph
3 In the series part of the graph, link the
series names to the scenarios
4 Make a title on the graph from the top
of the data table
5 Make a combo box to show alternative
scenarios
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Graph Step 1
Shade the first
two rows. This
will compare the
fixed base case
on the second
row with other
rows.
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Shade and then press F11
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Graph Step 2: Series Names from
Scenario Inputs
Right click on the graph and then link
the first name to the index value and
link the second name to the base
case.
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Graph Step 3: Enter the Chart Title
Enter the chart title using the same
process as described in the breakeven section
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Graph Step 4: Create a Combo Box
Create a combo box
with range names as
and copy the combo
box to the graph.
The cell link is the
row number and the
input range is the list
of scenarios
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Creating a Tornado Diagram
This shows a step by step process
to create a tornado diagram
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Use data from the scenario analysis
and Re-create the INDEX Function
1. Set up a scenario analysis using the INDEX function
together with the data table as described above, where
the column is used in the INDEX together with the
scenario number. This has two objectives. First, it
allows you to maintain the scenario analysis. Second it
provides a basis for creating data for the tornado
diagram.
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Similar to
the Index
function in
the scenario
analysis
21
Create an Option Button
2.
Add a form control that allows one to select
between a scenario analysis and a tornado
diagram (You can use option buttons where you
insert a button and then select a cell link. The
option buttons work well with the CHOOSE
function in excel).
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Enter the Variable Number
3.
Add an input for a variable number and
enter numbers across each of the variables. The
variable number can be entered near the scenario
number that was used in the scenario analysis
and the number for each variable can be entered
above or below the variable title.
Variable Number
Code Number
for each
variable
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Add TRUE/FALSE Switch Variable
Below the INDEX computation, add a variable that includes a true/false test for
whether the variable in the table is the same as the variable number input. For
example, say there are six variables as illustrated in the diagram above. There should
be a list of numbers from one to six above the variables. The test evaluates whether
the input number for the variable number equals the number associated with the
variable. There is only one value that is TRUE for the list of variables. The formula for
the test should use the F4 key for the variable number and compare this to each
formula as illustrated below:
Variable Number Input (Fixed with F4) = Number Associated with Each Variable
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Add IF test that uses either BASE CASE
or Selected Scenario with INDEX
5.
Create an IF function using the test variable. If the
variable is true, then use the value from the INDEX function
discussed in step 3 above. If the variable is false, then use
the base case value. Using this approach, every variable
remains at the base case value except the variable which
equals the variable number input. The IF test has the form
illustrated below:
IF(TRUE/FALSE Test, INDEX from Step 3, Base Case from
Scenario Table)
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Use the Choose Variable to Link
Variables to Model as with Scenario
6.
Use the CHOOSE variable together with the cell link
described in step 2 to select either the INDEX value – for the
scenario option, or the IF function – for the tornado option. The
values in this part of the analysis should drive the financial model.
An illustration of this part of setting up a tornado diagram is
illustrated in the excerpt below. The last line in the table is used in
the input section of the financial model.
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Create a Two Way Data Table
7.
After setting up the variable using both IF test that
runs one variable at a time, set up a two way data table
where one of the variables represents the variable number
and a second variable represents the scenario number for
the base case, low case and high case. The form of this two
way data table is illustrated below:
Sc Num
1
2
Variable Number
3
4
5
1
2
3
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Compute Low vs. Base and High vs.
Base
9.
For the first row, the base case output is simply repeated for in
each case. Once the table is computed, the base case versus the low case
and the base case versus the high case can be computed by simply
subtracting the low case row from the base case row and by subtracting the
high case row from the base case row. This presents the impacts of
different variables which is the basis for the tornado diagram. All that is left
to do is to present the data. An illustration of this step is shown below. You
can see that the variable with the largest effect if variable number 5 and the
second largest is variable number 2 with variable number 3 coming in last
place.
Sc Num
1
2
3
Low vs Base
High vs Base
Absolute Value
1
13.3%
11.4%
14.9%
2
13.3%
12.8%
14.8%
-1.9%
1.6%
3.5%
-0.6%
1.5%
2.1%
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Variable Number
3
13.3%
12.9%
13.6%
-0.5%
0.3%
0.8%
4
13.3%
12.8%
13.9%
5
13.3%
10.8%
14.5%
-0.5%
0.5%
1.0%
-2.6%
1.2%
3.7%
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Sort Using the SMALL Function
12.
To sort a variable one can use the SMALL function or the
LARGE function. In this case use the SMALL function with the
absolute value shown in the table above. The mechanics of the
small function is illustrated below:
SMALL(Fixed Row to Sort (Absolute Value from Table Above),
Variable Number)
Low vs Base
High vs Base
Absolute Value
Small
-1.9%
1.6%
3.5%
-0.6%
1.5%
2.1%
-0.5%
0.3%
0.8%
-0.5%
0.5%
1.0%
-2.6%
1.2%
3.7%
0.8%
1.0%
2.1%
3.5%
3.7%
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=H27-H26
=H28-H26
=H33-H32
=SMALL($D$34:$H$34,H25)
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Create a Sort Key with the MATCH
Function
13.
Match the sorted variable against the original absolute
value line so as to establish a sort key that can be used in with the
INDEX function to extract sorted variables. When computing the
sort key, use the MATCH function so as to create an exact match.
To do this enter a zero as the match type as illustrated below:
MATCH(Sorted Single Value, Unsorted Values -- Fixed, 0)
Unsorted Values
Single variable
Absolute Value
3.5%
2.1%
0.8%
1.0%
3.7%
=H33-H32
Small
Match
0.8%
3
1.0%
4
2.1%
2
3.5%
1
3.7%
5
=SMALL($D$34:$H$34,H25)
=MATCH(H36,$D$34:$H$34,0)
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Use Sort Key and INDEX Function to
Structure Variables for Graphing
14.
To create a graph, you will need the title of each variable as the
x-axis and the low versus the base and the high versus the base. To set-up
the data for making a graph, use the INDEX function along with the sort
key. For example, to find the title, enter the original titles (fixed with the F4
key) in the index command and use the sort key as the column number
(you do not need a row number) as illustrated below:
INDEX(Original Series of Titles – Fixed, Sort Key)
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Create Graph with F11 Key
15.
Graph the sorted variables using the F11 function and
change to a stacked bar chart (make sure that there is no caption
next to the titles so the excel will know that this is the x-axis.
Cost Synergy Percent
Traffic per Store
Margin per Store
Low vs Base
High vs Base
Growth Rate in Stores
Cap Exp per New Store
-3.00%
-2.50%
-2.00%
-1.50%
-1.00%
-0.50%
0.00%
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0.50%
1.00%
1.50%
2.00%
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Combo Box for Scenario Analysis
• The combo box is an effective way to
manage scenario analysis – it is better
than the data validation.
• Examples
• You want a series of oil prices (base case,
downside case, upside case) and the price
vary year by year.
• You want to establish a series of scenarios –
downside, upside, etc.
• You want to create sensitivity analysis on
variables – e.g. change the interest rate from
5% to 10% by 1%.
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Use of Combo Box
The combo box can be used effectively with range names if
you want a fancier list box. Steps:
1. Find combo box from the view toolbars, forms menu.
2. Use an range name and the format control to assign the list
(you could do this without a range name, but a range name
works well).
3. Assign a cell to link the number of the selection to. This puts
the number of the selection in a cell
4. Use the index, offset or choose command and the range
name to find the name and use it elsewhere
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Starting the Combo Box
As with the other commands, it all starts with
the View, Toolbars, Forms:
• Find the Combo Box
• Click the Combo Box Selection (a plus
sign appears)
• Drag the plus sign to make the combo
box appear
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Combo Box and Choose or Index
In these examples, the combo box is used with the choose
command or the index command to run scenarios.
Note that when the cell link is used, the cell link can be changed
independently (without the combo box) and the selection of the
combo box will change.
Multiple combo boxes can refer to the same cell link – so you
can change the scenario from multiple locations in the
spreadsheet
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The index command is related to the cells command in the macro
discussion below. It can be used to find the value of a cell in a
table. The syntax is cell(table,row,col)
Index
Index(range_name,1,1)
Index(matrix,5,5)
Use of Index with
range name
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Choose
The choose function is helpful for
scenario analysis.
o Input a number that defines a
scenario
o The choose command will choose the
row out of a table depending on the
scenario choosen
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Choose
Choose(index,number …)
Use of Choose Command with
range names to Select the
Scenario
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Combo Box and Offset Example
Use the Combo Box to Find the Row
Number of the Option
Use the Offset Command with anchor and
the number for the row offset. The column
offset is zero and the size is 1,1.
Offset(Anchor Cell, Rows Down, 0,1,1)
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Getting Back the Combo Box Information
with the Index Command
When you use a combo box, you often want the
result of the combo box in a cell for presentation,
sensitivity analysis, graphs etc.
To do this, use the index command, where the
range is the range that you used for setting-up the
combo box and the row or column number in the
index function is the cell reference
Example: index(range,row number)
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Combo Box Notes
Works well with the offset command – the cell link
can tell you how many rows to go down or how
many columns to go across
The range name in the combo box must be
vertical. You can use the transpose function
explained below to convert from horizontal to
vertical.
Caution: You need to have the input range for
display in columns rather than rows.
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Combo Box Hints and Warnings
If you use range names in a combo box, excel
does not automatically pick-up the combo box –
you must type the range name directly.
Range names are effective in combo boxes
because the range names allow you to copy the
combo boxes to other sheets (otherwise you
cannot copy the boxes)
You can use the Shift, Cntl, Spacebar to copy
multiple boxes to another sheet
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Combo Box Warnings
• Sometimes, you want the cell link of the combo
box to be a formula rather than a fixed number.
• Be very careful with this, because when you run
the combo box, the formula is lost.
• To solve this problem, make another cell and
use an if test or a choose command to solve the
problem.
• Another solution to the problem is to attach a
macro to the combo box (this also applies to the
spinner box and the scroll bars).
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Option Buttons
Option Buttons can be useful if there
are a set of different options (more
than only a true and false). When
you put multiple option buttons into
your sheet, only one is selected.
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Option and Check-Box Example
T
Option buttons attached to a
simple macro that moves
to a different part of the
sheet
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Attaching a Macro to a Scroll Bar and a
Spinner Box
• Quite often, the scroll bar or the spinner
box is used along with other elements of
a spreadsheet. For example, you may
require some formulas to be over-ridden
with the scroll bar.
• In these cases, it is a good idea to attach
a macro to the spinner box and be sure to
also use range names to make the macro
flexible.
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Data Tables
Data tables can be effective in presentation of
results when you want to test a number of
scenarios.
Data tables are effective in financial models for
break-even analysis, for sensitivity analysis and
for credit analysis.
For example, you can see what happens to the
year by year debt to capital ratio when the price is
lower.
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The General Concept of Data Tables -1
Before using data tables, you may have done the
following when computing scenarios:
1.
2.
3.
4.
Run the model with a certain variable
Copy and then paste special the an important
variable to another part of the spread sheet
Run the model with another value for the
input variable
Copy and paste special the output variable
with the second value of the input variable to
section of the spreadsheet variable with the
scenarios
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The General Concept of Data Tables -2
The data tables do this for you. They work
as if you keep re-running the excel model
with different input variables and then
copying and pasting special the output
variables to another area of the sheet.
Therefore, to operate a data table, you
need to know the output variable that you
want to report and the input variable (or
variables) that you want to adjust.
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Before Running Data Tables – A Couple
of things you should know
The data tables are very effective, but they can be
frustrating if you are just beginning to use them.
Further, Excel has quirks that make them a bit
confusing.
1.
2.
First, when you run a data table, the input variable
MUST BE ON THE SAME SHEET as the data table
In the TOOLS, and OPTIONS and CALCULATION
menu, the calculation option should be set to
AUTOMATIC, otherwise, you need to press the F9
key to re-calculate the data table.
After explaining the data table, these issues will be
addressed. For now, make variable is on the same
sheet as the data table and make sure that the
calculations is set to automatic.
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Setting the Calculation to Automatic
The setting to
automatic is
illustrated below. It
is a much better
idea to set the
calculation to
automatic except
data tables as
explained below,
but for now set it to
automatic as
illustrated
Get the menu from the TOOLS, OPTIONS
and CALCULATION Menu. Set to
AUTOMATIC
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One Way and Two Way Data Tables
Once you are sure the input variable is in
the sheet where you will put the data table
and the calculation is set to automatic, you
must decide whether you need a one-way
or a two-way data table. The difference is
the following:
1.
A one way data table has one
INPUT Variable and as many output
variables as you want
2.
A two way data table has one
OUTPUT Variable and two input variables
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The Difference Between One-Way Data
Tables and Two-Way Data Tables
•
In developing data tables,
it is important to
understand the difference
between one way and two
way data tables.
Output Variables
•One Way
•These are the most useful –
here you can analyze multiple
outputs given an single input
variable.
Input Variable
Output Variable
•Two Way
•Here you can analyze two
different input variables on an
output variable, but you can
only analyze one output
variable.
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Step by Step Data Table Process
With the calculation set to automatic and the
input variable in the same sheet, use the
following three steps for a one way data table
for break-even analysis:
1. Set-up the table using multiple output variables
and a single input variable as explained on the
next slide
2. Shade the entire data table (but NOT THE
TITLES)
3. Go to the Excel Menu and Press DATA, TABLE
4. A box will appear asking for a ROW and a Column
INPUT. Enter the SINGLE INPUT Variable in the
Column input and LEAVE the ROW INPUT
BLANK
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Setting Up a One Way Data Table
Use the following process to set up a data
table with ONE INPUT variable and One or
MORE OUTPUT Variables
1.
2.
3.
Input the range in input variables in
a single column (you could also
enter the variables in a row)
Move ONE Row Above the first
input variable and one column to
the Right of the first input variable
and enter a formula that depends
on the input variable (a formula can
be a cell with an = linking to a
formula in another sheet)
To enter more variables, move to
the right and enter more formulas
Output Variables must
be one up and one to
the right of the top
input variable
Input variables can be in any
increment and you can use
formulas
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Entering the Row and Column Input
The most confusing part of
entering a data table is putting
in the values for the row input
and column input. Note a
couple of points:
1. Excel asks for one cell and
not multiple cells – you must
always enter one cell
2. If there is an output formula,
there is no need for an input
cell
In this example, there is no row input cell and the column
input cell refers to the input.
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Graph of Data Table with Sensitivity
In the example
below, the series
are graphed with
different levels of
junior debt to
evaluate how
break-even points
are affected.
Please see the
sensitivity analysis
section
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Run with different
sensitivity variables
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Conditional Formatting with Data Tables
to Illustrate Hurdle Values
To illustrate when values are less than or
greater than hurdle rates, follow the
following process:
1. Enter hurdle rates above variables in
the table
2. Use conditional formatting with one
column referring to the hurdle rate
3. Copy the format from the first column
to other columns
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Entering Hurdle Rates
An Example of entering hurdle rates
is shown in the table below
Enter the hurdle rate above
the data table
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Use Conditional Formatting with One
Variable
Conditional formatting can be used to
show when the values are below the
hurdle rate.
Use relative references when
defining the conditional formatting
and use the less than criteria
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Results of Conditional Formatting with
Data Table
The following illustrates the data table
after the conditional formatting has
been used
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Finding the Break-Even Point with Match
and Index
You can use the match and index command to
find the point at which the hurdle rate is achieved
once the table is computed. To do this follow the
following steps:
1. Use the match statement to find the row number in
the table that matches with the hurdle rate.
2. Use the index command with the data array as the
input values and the row number from the match
statement
The match and index statements are described
below.
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Using the Match Statement with
Ascending Data
Often the data tables will have data that
decreases with higher row numbers. In this case
you should use the match statement with -1 at the
end of the statement as follows:
MATCH(HURDLE,DATA COL,-1)
If the data is ascending, then use 1 instead of -1 in
the match function. Once the row number is
found, use it with the index command as follows
INDEX(DATA COL,MATCH ROW)
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Two Way Data Tables
With two way data tables,
you can enter two input
variables instead of one
variable.
Here you must set-up the
table with sensitivity inputs
on a row and sensitivity
inputs on a column
Row of Table
Column of table
The formula goes between
the row and the column
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Set Up Table
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Two Way Data Table with Rows and
Columns
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Row Table – Sensitivity Analysis
A one-way data table can
work with rows instead of
columns. In this example, a
sensitivity factor is in cell B2.
This will drive the data table.
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Step 2 – Set up Scenarios
Note that in this case the
data is input across a row
rather than down a column.
The other mechanics are
similar.
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Define Range and Table
In a one way data table
defined with rows, use the
row input cell instead of the
column input cell.
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Scenario Manager
For “What if” analysis
Values produced by alternative drivers
stored as scenarios
Operation
Tools Scenarios
Add Scenario
Scenario Summary Report
Report Manager
Use the Scenario case in the exercises
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Buttons, Scroll Bars and Combo
Boxes
These items can be good for presentation
and are easy to implement. They are very
good if you want to use alternative inputs in
many different pages of a spreadsheet
Finding the Developer Toolbar in Excel
2007
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Scroll Bars, Spinner Boxes and Combo
Boxes
• Scroll bars, spinner boxes and combo boxes may seem
like gimmicks, but they can improve the structure and the
accuracy of spreadsheets by allowing you to change
inputs from many places while keeping the inputs
themselves in the input sheet.
Be careful –
• To implement these boxes and bars, select the View,
Toolbars, Forms options from the main menu.
• Once the menu of buttons appears, select the appropriate
button and click on it with the mouse. After you have
selected the form, a + sign will appear and paint it
somewhere in your worksheet with the mouse.
• To make the form operational, right click on the form and
then use the format control option that appears.
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do not use the
view, toolbars
and control
toolbox option
74
Excel Discussion of Scroll Box
Scroll bar Scrolls through a range of values when you click the scroll
arrows or when you drag a scroll box. You can move through a page of
values by clicking between the scroll box and a scroll arrow.
Scroll bar properties
Current value The relative position of the scroll box within the scroll bar.
Minimum value The position of the scroll box closest to the top of a vertical
scroll bar or the left end of a horizontal scroll bar.
Maximum value The position of the scroll box farthest from the top of a vertical
scroll bar or the right end of a horizontal scroll bar.
Incremental change The amount the scroll box moves when the arrow at either
end of the scroll bar is clicked.
Page change The amount the scroll box moves when you click between the
scroll box and one of the scroll arrows.
Cell link Returns the current position of the scroll box. This number can be used
in a formula or macro to respond to the position of the scroll box.
3D shading Displays the scroll bar with a 3-dimensional shaded effect.
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Spinner Box
Spinner Increases or decreases a value. To increase the
value, click the up arrow; to decrease the value, click the
down arrow.
Spinner properties
Current value The relative position of the spinner within the
range of allowed values.
Minimum value The lowest value allowed for the spinner.
Maximum value The highest value allowed for the spinner.
Incremental change The amount the spinner increases or
decreases when the arrows are clicked.
Cell link Returns the current position of the spinner. This
number can be used in a formula or macro to return the actual
value you want selected by the spinner.
3D shading Displays the spinner with a 3-dimensional
shaded effect.
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Sensitivity Analysis
To illustrate how to use the forms, the
following slides show a step by step
process to add sensitivity analysis to a
model. This analysis involves the
following:
1. Graph data in the model
2. Add a spinner box to an input variable in
the model
3. Put a title in the graph that lists key
inputs and key outputs
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Creating a Graph with F11 or ALT, F1
The simplest way to create a graph is
simply to shade the data that you want
graphed and then to press the F11 key.
A graph can also be created with the ALT
and F1 key. I cannot find any difference
between the F11 and the Alt F1 Key
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Creating titles on a Graph with the F11
or the Alt F1 Key
To illustrate how to create titles with the F11 or the
Alt F1 Key, consider the following table.
If the F11 key is pressed in any cell next to or
above, below or in the corner of the table, the
graph will be created with appropriate scale
names and series names.
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Illustration of Scroll Bar for Sensitivity
Analysis – Put a Scroll to Change Graph
Step 1:
Set up a sensitivity analysis with a graph and use the
View, Toolbars, Forms from the main menu. This is
useful when evaluating a single variable.
Results of View,
Toolbars,
Forms
The sensitivity analysis will be
driven by the number in the yellow
cell. This will be changed with the
scroll bar.
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Adding a Scroll Bar or Other Form to the
Excel Sheet
To add a form, use the following
three steps:
Retrieve scroll bar using
view/toolbar/form.
Then click on a form AND LET GO.
You will see a + sign on the excel
sheet.
Finally, to put the form on the
sheet, use the left mouse key and
re-size the form
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This is a blank form that
must be linked to the yellow
cell.
81
Edit Format Control of Scroll Box
Step 3:
Assign the scroll box to the sensitivity factor and assign a minimum and
maximum value
To link the cell, right click on
the scroll box form and
assign the cell link to the
yellow cell
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Adjusting Scroll Bars and Spinner Boxes
with Decimals or Large Numbers
A problem with the excel forms is that they do
not accept percentages, large numbers or
negative numbers. To implement the scroll
bars in this case, use the following process:
1. Attach the spinner or the scroll to a blank cell
in excel with ranges between zero and 100
2. Name the blank cell so that you can put it in
another cell
3. Compute the actual input percent through
dividing the cell link (with a range name) by
100.
Cell Link
100%
100
Cell Link/100
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Adding Cell References to Graph Titles
Step 1:
Put Something in
Graph Title – any
title at all; in this
case the word
“test.”
Right click on the
graph and select the
chart options and
then the chart titles
Without some
text, the process
will not work
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Type the Text and the Numbers to be in
the Title in a Single Row
When attaching a title, the set of text and
titles must be on one row in excel. You can
put a second line on the graph using the
ALT and ENTER key as part of the text.
The example below illustrates the process.
Use the ALT and
ENTER to put a
second line on
the graph
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Click on the Existing Title and Link to the
Row with the Text and Numbers
Put an = sign in the
formula bar
Click on the
title and
then put an
= sign in the
formula bar
Click on the
temporary title
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Shade the row with the text and the title
in order to finish the graph title
The final step
is to shade the
graph title and
press the
ENTER key.
The final
result is
shown below.
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Shade the row with
the text and the
titles
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Adding Numbers to Strings of Text – For
Titles and Graphing – Format as Decimal
An alternative way to add a title is
to use the text command in excel
and string the text together with
the & sign
Append Strings and
Make Number a
decimal
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Adding Numbers to String – Format the
Number with Commas and Decimals
Use Commas instead of
decimal in example
below
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Adding a New Line to a Graph Title
You often would like to control where a
new line occurs. This can be controlled by
using the CHAR(10) function as part of the
text command. For example, the following
would split the title that is presented on the
graph:
“First Line”&char(10)&”Second Line”
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Adding Text in a Graph
Sometimes you would like the text box of a
graph to change when results of the
spreadsheet change.
To do this, first add the text box. Then,
once the text box is on the sheet, go to the
formula bar and use an = sign to refer to
the text that will go into the text box
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Example of Adding a Text box
The sample below shows how to add
a text box
Note the equal sign
in the formula bar
after text box has
been created
Use the & key and the
text function and the
CHAR(10) to create a
string for use in the text
box
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Data Tables
Data Tables are very effective in
Developing Break-even and
Sensitivity Analysis in Models
Analysis with a Break-Even Table
Once you have a data table, you can do a lot of
analysis with the data table including:
1. Illustrating the data variable together with
sensitivity analysis on other variables
2. Graphing the data table
3. Using the conditional formatting with the data table
to highlight when hurdle values are not met
4. Computing break-even values using the match
and index command
This analysis is explained below with a one way data
table
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Putting Flexible Titles in Graphs
Adding flexible titles to graphs is an effective way make
sensitivity presentations and to monitor results while you are
developing a model. For example, you can show a graph of
the cash flows and at the same time show the equity and
project IRR. To do this use the following four step process:
•Create a blank title with some text – the process does not
work without an existing title
•Click on the graph title
•Link the title with a cell or a row somewhere in the sheet
•Adjust the format of the rows
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