From the course: Excel: Financial Modeling with Dynamic Arrays

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Selecting the right function

Selecting the right function - Microsoft Excel Tutorial

From the course: Excel: Financial Modeling with Dynamic Arrays

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Selecting the right function

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- [Instructor] There are now more than 500 different functions available in Excel and deciding which one to choose is part of the skill of being a good financial modeler. Once you start working with Excel functions and your model gets complex, it's quite easy to start nesting them together, and before you know it, they can get really long and complex. Let's take a look at an example of what not to do. So here we've got a model where we have laid out the different inputs into different rows, but instead of using those, we have created a very long and complex formula. In fact, it is almost impossible to audit and figure out what on earth is going on here. So if I wanted to troubleshoot it, it makes it quite difficult to take the formula apart. It would make much more sense to use all of these inputs and calculate them separately. So if I take the price and multiply it by the number of calls, it makes much more sense. It's a much simpler formula, easier to follow, and I can see that, in…

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