Tag Archives: Formula

Spotting Errors

In a workbook, I like to be consistent in the use of columns across all worksheets. If the first month of my model is in column L in one worksheet, then it will be the same in all sheets. I have found that this method is really useful in reading formulas because you can promptly see [...]
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How to Model Depreciation

Completing the OFFSET series, let’s see a real-life example on how to use the OFFSET function to model depreciation.

Basically, the depreciation model needs the following inputs:

  • Monthly capital expenditures forecast
  • Useful life of the assets

With those inputs we’ll be able to calculate:

  • Monthly depreciation
  • Accumulated CAPEX
  • Accumulated depreciation
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Quick tip: Make your formulas legible

Embedded Excel functions is certainly a great feature, but it often makes formulas really long and hard to read. You can easily make your formulas more legible by simply pressing ALT-ENTER while editing it to force a line feed. See for yourself the result of doing so. Note that you need to put the line feed (ALT-ENTER) [...]
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