From the course: Excel: Financial Modeling with Dynamic Arrays

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How dynamic arrays help adhere to best practice

How dynamic arrays help adhere to best practice - Microsoft Excel Tutorial

From the course: Excel: Financial Modeling with Dynamic Arrays

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How dynamic arrays help adhere to best practice

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- [Instructor] A lot of the points of financial modeling best practice that we've been through in the last movie, were about making the model easier to build, easier for others to follow, and less prone to error. Dynamic arrays certainly help us stick to best practice. I'm sure you know by now how much I love using dynamic arrays, and here are some of the reasons why. Because you enter the formula in the top left hand block of the calculation, using a dynamic array forces the formula to be consistent. This means that there are fewer formulas in the model, which is also good practice. The fewer formulas we have, the less that can go wrong, and because they spill dynamically, there's no need for absolute referencing. We don't have to worry about where the dollar signs go. Consistent formulas means that auditing is easier, there's no need to check every cell. If the first cell of the calculation is correct, we can assume that the rest are as well. In the last chapter, we already talked…

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