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Excel vs. Automation in Financial Modeling

Learn about the software used in financial modeling

Written by

CFI Team

Published March 31, 2023

Updated June 28, 2023

What Software is Used in Financial Modeling?

Before we discuss Excel vs. automation in financial modeling, let’s take a look first at how software is used to build financial models. Financial modeling involves creating an abstract representation of an actual or projected financial event. Thus, a financial model is a mathematical tool that can be used in software like Microsoft Excel to help in designing the abstract model.

Financial modeling is important to businesses because it can help to predict how a company is likely to perform financially in the future. To predict financial performance, a financial modeler utilizes the company’s historical performance while making assumptions about the future.

Key Highlights

When it comes to building a financial model, there are many trade-offs between using Excel and a different, specific financial modeling software.

Using Excel is a totally customizable way of building a model from scratch and can handle any type of layout, structure, calculation, or format you want. However, it is prone to errors.

Financial modeling software offers the structure and error prevention we all want in our analysis but at the cost of not being able to accommodate attributes that are specific to a company or an asset.

Excel vs. Automation – Building and Designing Financial Models

When designing financial models, one needs to make many tradeoffs between using Excel and other software that automates most tasks. Financial analysts and other users of financial information continue to debate on which one is better. Let’s see the differences between the two:

1. Customization

Given that Excel is manned by a human modeler, it offers a great deal of customization. The fact that Excel allows one to design a model from scratch means that individuals enjoy a lot of freedom in structuring the model the way they want. Also, they can format the model based on the needs of the business for which they are modeling.

For example, if there are some asset-specific features that need addressing in the model, those may only be achieved using Excel. In contrast, using specific financial modeling software may limit the scope of customization, as it is already pre-programmed.

2. Structured outcome

The best time to use financial modeling software is if one is dealing with a specific structure for a model. In such a way, the human modeler can reduce the likelihood of making errors as most of the tools they will use are programmed to prevent errors.

On the other hand, the likelihood of making errors when using an Excel model is higher than with an automated system. So, if there’s an emphasis on standardization and accuracy, the better approach is to use financial modeling software.

3. Development of analytical skills

However, if a modeler is more interested in understanding a business, an Excel model is much better. This is because using Excel involves going through the meticulous process of calculating pretty much everything. Although tedious, the act of computing different financial records really helps one to understand the business better.

Now imagine that the modeler was using a software program instead. The program would use the company’s financial statements, capital structure, and forecast, and then reveal a net present value (or a different desired output) spontaneously. Even though it saves time, it would not teach the modeler much about the business itself.

Learn more about different ways of utilizing Excel to model financial statements.

4. Risk analysis

Although specific modeling software doesn’t necessarily enlighten a modeler about a business, it is generally better than Excel with regards to risk management. Even though one can run a sensitivity analysis on Excel, the whole process will be completely manual; hence, increasing the probability of making errors or observing incorrect results. Risk analysis methods like sensitivity analysis and Monte Carlo simulation are more easily performed with financial modeling software, which offers higher precision.

5. Logical interpretation

There’s a need to assess the relationship between the dependent variables in order to apply logic, and that can be very hard to achieve when using software. Since certain financial modeling software uses built-in tools of logic, it’s not always possible to analyze the flow of individual operations.

6. Visual representation

Visual representation makes up an important part of financial modeling. While Excel is very good at representing data in graphical form, there may be other, third-party resources that are even better.

7. Handling complex data

Although Excel has proven to be an effective method thus far, there are a few areas where it falls short, particularly in handling complex sets of data. However, with financial modeling software, one can compute multidimensional and large sets of data without any difficulty. Most programs allow modelers to create and switch the rows and columns layout of the model based on the situation at hand.

Should companies automate financial modeling?

Whether financial modeling should be automated or not will depend on individual company needs. As an example, small businesses that deal with small data sets and don’t need very structured outcomes should use Excel because it gives the owner insight into their operations.

However, if a company is dealing with diverse and large data sets or is more interested in precision and risk management, then automating its financial modeling is the best option.

Additional Resources

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Top 10 Financial Planning Books

Best Books to Understand Financial Planning

This list of books helps you learn how to manage your finances effectively. It is a comprehensive list that allows you to plan your finances better. The books give step-by-step guidance to different investment plans.

Start Your Free Investment Banking Course

Download Corporate Valuation, Investment Banking, Accounting, CFA Calculator & others

Here are the top 10 financial planning books to help you invest and save wisely.

Let us go through the reviews of each book.

Book #1: The total money makeover

Author: Dave Ramsey

Buy this book here.

Review:

The book’s subject concerns the modus operandi of personal finance and how debts can cause severe financial troubles. The book focuses on how managing finance is important and living a debt-free life is worthwhile. The book focuses on changing behaviors rather than increasing financial capacity.

Key Points:

The “Debt Snowball” essentially lists all debts from smallest to largest (excluding mortgage) and dedicates all financial resources to paying off the debt from smallest to largest.

The book recommends investing 15% of your income for retirement. This number is somewhat useless because it ignores age and when you want to retire.

Use mutual funds, specifically growth-stock mutual funds. The book implies that, by following this strategy, you should receive a 12% return on your investment.

Book #2: Psychology  of Money

Author: Morgan Housel

Buy this book here.

Review:

The Psychology of Money gives new insight into why and how consumers interact with cash. Morgan Housel shares many short stories allowing you to consider the world’s interactions with cash more closely.

Key Points:

Discover all the different ways that people think about cash.

See why smart people make wrong money decisions.

Learn how to harness your mental approach to money.

Book #3: Rich Dad Poor Dad

Author: Robert T. Kiyosaki

Review:

Rich Dad, Poor Dad” is a story of two fathers. One of them has a collection of diplomas and degrees. The other is a high school dropout. When the overqualified father dies, he leaves next to nothing behind, including some unpaid bills. The school dropout father will become one of Hawaii’s wealthiest men and pass on an empire to his son. Throughout his life, the former would say, “I can’t afford to treat myself.” But the latter would say: “How can I treat myself?”

Key Points:

The main reason that people struggle with financial problems is that they spend many years in school without learning about money and investments. The result is that people know to work at the service of money but do not learn to put money to work for them.

Some people leave their job because they don’t get paid enough. Others see it as an opportunity to learn something new.

Its main objective is to teach you how to enter the working world, allowing you to become a good employee.

Book #4: The Million-Dollar Financial Advisor

Author: David J. Mullen Jr.

Buy this book here.

Review: Key Points:

Save time and effort by crafting efficient processes for every critical task.

Catapult revenue with wealth-management offerings that clients will pay a premium for.

Expand your practice with great marketing.

Book #5: The Dumb Things Smart People Do with Their Money

Author: Jill Schlesinger

Buy this book here.

Review:

When making important financial decisions, thinking from your heart instead of your brain is easy. So if you’ve made well-intentioned mistakes like saving for your child’s college before retirement or taking on extreme risk when investing, you’ve come to the right place. And if you’ve avoided uncomfortable moments such as making a will or planning for long-term care for an aging parent, this is the book for you. Jill also points out that you might be saddling your kids with money issues and shows you how to stop the cycle.

Key Points:

The book tells you how to break wrong habits and follow Jill’s practical and accessible rules for financial management.

This way, you can save tens or even hundreds of thousands of dollars and avoid sleepless nights.

This book tells you what you need to hear about retirement planning, insurance, college financing, how to save money, real estate, and more.

Book #6: Private Wealth Management

Author: G. Victor Hallman and Jerry Rosenbloom

Buy this book here.

Review:

Everyone has witnessed stock market booms and busts, various presidential administrations, economic prosperity and downturns, and technological revolutions in the last 30 years. Through it all, this classic guidebook has retained its status as the most up-to-date and accurate resource to help Americans protect their futures by ensuring their families, investing wisely, and planning for their estates and retirements.

Key Points:

This wealth-building tool features proven cutting-edge financial thinking and high-return/ low-risk strategies in virtually every applicable area.

It includes Index funds, Dollar-cost averaging, Value investing, Profit-sharing plans, Fixed-income investing, and Stock bonus plans.

The book offers an effective, coordinated process that shows readers how to plan a prosperous financial future in today’s no-guarantee financial environment. It also helps set financial objectives and understand the planning process for investing in equities and fixed-income securities.

Book #7: The Intelligent Investor

Author: Benjamin Graha

Buy this book here.

Review:

Written in 1949, this book on investment and financial management holds relevance even to this day. It focuses on strategies one could embrace to invest successfully in the stock market. Benjamin Graham, the author, focuses on how one can determine the value of a stock in terms of numerous parameters like the company’s long-term prospects, financial strength, dividend record, and so on. It also helps the reader understand how the stock market operates on the greed factor of the investors, the fears, speculations, and short-term investors. At the end of this book, one would not just learn the nuances of investing in the stock market and the various jargon associated with it but would also be able to have emotional control over their investment decisions.

Key Points:

Make informed investment decisions rather than emotional ones

Understand how to analyze the companies and their stocks before investing

Understand how to steer clear of the herd mentality

Book #8: A Random Walk Down Wall Street

Author: Burton G. Malkiel

Buy this book here.

Review: Key Points:

An easy guide to managing one’s investment portfolio without a broker.

Talks in detail about different investment types and not just limited to stocks and bonds.

Provides prudent strategies to increase the return on investments in the long run.

Book #9: The Little Book of Behavioral Investing

Author: James Montier

Buy this book here.

Review:

How often do we spend time to understand their investment patterns and see if the decisions we make are emotion-driven or data-driven? Well, here is one book that would change this forever. This book by James Montier focuses on a time-tested narration of the behavioral patterns of investors and how certain behaviors might be signing up people for their failure. In other words, the book provides a detailed analysis of all the psychological pitfalls one could face while trying to invest.

Key Points:

The book digs deep into the importance of data over emotions in investments.

It helps the reader understand the psychological biases that interfere with investment decisions.

Research-driven insights on common pitfalls of investments and how one could avoid them.

Book #10: It’s Your Money: Becoming a Woman of Independent Means

Author: Gail Vaz-Oxlade

Buy this book here.

Review:

It is common knowledge that most women, even to this day, do not enjoy financial independence. In this book, Gail Vaz-Oxlade focuses on helping women worldwide understand how investments work and how to put their money to good use. This book acts as a guide that helps women understand how they can gain financial freedom, invest right, and take control of their money. In other words, this book acts as a great DIY financial independence book and considers various real-life events and the financial changes that come with them. Hence, it is relatable to everyone, irrespective of their financial background.

Key Points:

It serves as a guide to help people become debt-free.

It puts money and life into perspective and focuses on building financial freedom.

The book helps overcome challenges in life without putting a strain on one’s finances.

Recommended Books

This article reviews the top 10 financial planning books to guide individuals. To know more, read the following books,

Apple Announces Good Financial Results

Apple Reports Second Quarter Results – I’ll be liveblogging here.

Best March Quarter Revenue and Earnings in Apple History

In accordance with the subscription accounting treatment required by GAAP, the Company recognizes revenue and cost of goods sold for iPhone™ and Apple TV® over their estimated economic lives. Adjusting GAAP sales and product costs to eliminate the impact of subscription accounting, the corresponding non-GAAP measures* for the quarter are $9.06 billion of “Adjusted Sales” and $1.66 billion of “Adjusted Net Income.”

Apple sold 2.22 million Macintosh® computers during the quarter, representing a three percent unit decline from the year-ago quarter. The Company sold 11.01 million iPods during the quarter, representing three percent unit growth over the year-ago quarter. Quarterly iPhone units sold were 3.79 million representing 123 percent unit growth over the year-ago quarter.

“We are extremely pleased to report the best non-holiday quarter revenue and earnings in our history,” said Peter Oppenheimer, Apple’s CFO. “Apple’s financial condition remains very robust, with almost $29 billion in cash and marketable securities on our balance sheet. Looking ahead to the third fiscal quarter of 2009, we expect revenue in the range of about $7.7 billion to $7.9 billion and we expect diluted earnings per share in the range of about $.95 to $1.00.”

Apple will provide live streaming of its Q2 2009 financial results conference call utilizing QuickTime®, Apple’s standards-based technology for live and on-demand audio and video streaming. The live webcast will begin at 2:00 p.m. PDT on April 22, 2009 at chúng tôi and will also be available for replay for approximately two weeks thereafter.

During fiscal 2007, the Company began selling the iPhone and Apple TV. Because the Company may provide unspecified features and additional software products to iPhone and Apple TV customers in the future free of charge, in accordance with GAAP the Company recognizes revenue and cost of goods sold for these products on a straight-line basis over their economic lives, with any loss recognized at the time of sale. Currently, the economic lives of these products are estimated to be 24 months. This accounting treatment, referred to as subscription accounting, results in the deferral of almost all of the revenue and cost of goods sold during the quarter in which the products are sold to the customer. Other costs related to these products, including costs for engineering, sales, marketing and warranty, are expensed as incurred. Further, the costs to develop any future unspecified features and additional software products that may eventually be provided to customers also are expensed as incurred. In contrast, the Company generally recognizes revenue and cost of goods sold for its other products, such as Macs and iPods, at the time of sale, as the Company does not provide future unspecified features or additional software products to those customers free of charge.

In July 2008, the Company began selling iPhone 3G, the second-generation iPhone, and at that time significantly expanded distribution by establishing carrier relationships in over 70 countries. Unit sales of iPhone 3G have been significantly greater than sales of the first-generation iPhone. During the first quarter of iPhone 3G availability ended September 27, 2008, 6.9 million units were sold, exceeding the 6.1 million first-generation iPhone units sold in the prior five quarters combined.

Unit sales of iPhone 3G continued to be significant in the quarter ended March 28, 2009, with 3.79 million iPhones sold. As a result, the amount of revenue and product cost related to those iPhone sales that the Company deferred for recognition in future periods under subscription accounting was substantial. While the GAAP results provide significant insight into the Company’s operations and financial position, management continues to supplement its analysis of the business using financial measures that look at the total sales, related product costs and resulting income for iPhones and Apple TVs sold to customers during the period. The presentation at the end of this press release includes the following non-GAAP measures: “Adjusted Sales,” “Adjusted Cost of Sales,” “Adjusted Gross Margin,” “Adjusted Operating Margin,” “Adjusted Net Income” and “Adjusted Diluted Earnings per Share.” These financial measures are not consistent with GAAP because they do not reflect the deferral of revenue and product costs for recognition in later periods. The above-mentioned non-GAAP measures are generated by adjusting the related GAAP measures solely to reverse the effect of subscription accounting. The Company uses these financial measures, along with other measures discussed below, to provide additional insight into current operating and business trends not readily apparent from the GAAP results.

Management uses Adjusted Sales to evaluate the Company’s growth rate, revenue mix and performance relative to competitors. Given the impact of iPhone unit sales during the quarter ended March 28, 2009, Adjusted Sales provides a meaningful measurement of the Company’s growth by reflecting amounts generally due to Apple at the time of sale related to products sold within the period. Further, eliminating the effects of deferred revenue (current sales deferred to future periods and prior sales being recognized currently) provides more transparency into the Company’s underlying sales trends. Management uses the non-GAAP measures of “Adjusted Cost of Sales,” “Adjusted Gross Margin” and “Adjusted Operating Margin” to measure the Company’s operating performance based on current period iPhone and Apple TV sales and to facilitate ongoing operating decisions. Additionally, because the Company recognizes engineering, sales, and marketing expenses as incurred, including expenses related to iPhone and Apple TV, management uses Adjusted Sales to evaluate returns on those costs, to manage year-over-year operating expense growth, and to budget future expenses. Furthermore, because they are considered meaningful indicators of current business performance, the non-GAAP measures “Adjusted Sales” and “Adjusted Operating Margin” are metrics that factor into the determination of management compensation beginning in fiscal year 2009. Finally, management uses the non-GAAP measures of “Adjusted Net Income” and “Adjusted Diluted Earnings per Share” to measure the Company’s operating performance based on current period iPhone and Apple TV sales, to facilitate ongoing operating decisions, and compare performance relative to competitors.

Management believes that these non-GAAP financial measures, when taken together with the corresponding consolidated GAAP measures and related segment information, provide incremental insight into the underlying factors and trends affecting both the Company’s performance and its cash generating potential. Management believes these non-GAAP measures increase the transparency of the Company’s current results and enable investors to more fully understand trends in its current and future performance.

As noted previously, these non-GAAP financial measures are not consistent with GAAP because they do not reflect the deferral of revenue and product costs for recognition in later periods. These non-GAAP financial measures do not adjust for the costs associated with the Company’s intention to provide unspecified new features and software to purchasers of iPhone and Apple TV products. These costs are expensed as incurred under GAAP’s subscription accounting model, and are not adjusted in these non-GAAP financial measures. As such, these non-GAAP financial measures are not intended to reflect in a given period all of the costs of sales made in that period. Rather, the non-GAAP financial measures presented below are intended for the limited purpose of presenting performance measures that include the total sales, related product costs, and resulting income for iPhones and Apple TVs in the period those products are sold to customers.

Management believes investors will benefit from greater transparency in referring to these non-GAAP financial measures when assessing the Company’s operating results, as well as when forecasting and analyzing future periods. However, management recognizes that:

Further, these non-GAAP financial measures may be unique to the Company, as they may be different from non-GAAP financial measures used by other companies. As such, this presentation of non-GAAP financial measures may not enhance the comparability of the Company’s results to the results of other companies.

A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure or measures appears at the end of this press release.

Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning computers, OS X operating system and iLife and professional applications. Apple is also spearheading the digital media revolution with its iPod portable music and video players and iTunes online store, and has entered the mobile phone market with its revolutionary iPhone.

FTC: We use income earning auto affiliate links. More.

Advantages Of Automation Testing In Software Development

The testing phase is critical in the process of developing apps or software. Testing mostly seeks to check the software’s quality, durability, and reliability. The teams responsible for testing seek to detect errors. These errors can be rectified before the start of the production phase.

Even though they are professionals, there is always a possibility of missing some errors. Manual testing can be unreliable, and it is no surprise that many companies have now embraced automation testing.

1. Improved Accuracy

Test automation increases your chances of getting error-free releases. Because of the minimal human intervention, there is no room for bias or human error.

A human tester will make mistakes regardless of how experienced they may be. However, the results of a machine will always be accurate. The risk of failure is almost non-existent.

2. A Shorter Testing Period

3. Cost Saving

With manual testing, you cannot run repetitive tests. In fact, testing costs increase with time. Automated testing gets cheaper in the long run. When you create test scripts, you can keep reusing them 24/7 at no extra cost.

Even though initial adoption may be expensive, it eventually pays off. The ROI from automated testing depends on the level of adoption. The more cases you can generate and use, the higher your ROI.

4. High App Performance and Quality

Because of the extent of test coverage, automated testing results in better app quality and performance. You can run hundreds of automated cases at the same time. This means that you get to test an app against various platforms. You can test multiple devices simultaneously.

Cloud-based device farms can help you get the most from your test concurrency and parallelism. You can use them to cover all variants of hardware and OS configurations.

5. Higher Productivity

6. Instant Feedback

This is another critical benefit of automated testing. When there is a failure on the testing report, you can deal with it immediately. You don’t need to waste days or weeks trying to interpret code.

Immediate feedback comes in handy when an app hits the market. Manual testing makes it difficult to fix bugs quickly. Updates are also pretty slow. Automated testing promotes better user experience, customer satisfaction, and team responsiveness.

Testing is a critical part of software and app development. It is prudent to make the testing stage part of your development cycle.

Automation testing maybe your best option. It yields accurate results, saves time, and improves productivity. With the wide variety of free testing automation tools, you can reap the results without investing your money.

Countif Not Blank In Excel

COUNTIF Not Blank in Excel

COUNTIF Not Blank in Excel is used for counting any defined number/text range of any column without considering any blank cell. This becomes possible only by using the COUNTIF function, which follows the defined criteria to get the desired output.

The syntax for COUNTIF is Not Blank in Excel 

COUNTIF(Range, Criteria)

The syntax for COUNTIF Function includes 2 parameters which are as follows:

Range = The range we must select from where we will get the count.

Criteria = Criteria should be any exact word or number we need to count.

The return value of COUNTIF in Excel is a positive number. The value can be zero or non-zero.

How to Use?

Using Excel Countif Not Blank is very easy. Here we will see How to use COUNTIF Function to find how many cells are not blank in the sheet. Let’s understand the working of the COUNTIF Function in Excel through some examples below.

You can download this Excel COUNTIF Not Blank Template here – Excel COUNTIF Not Blank Template

COUNTIF Not Blank in Excel – Example #1

We have small data of some random text and numbers in a column. And this column has a blank cell as well. Counting the cell without blank cells for a large amount of data becomes very difficult. So, we will apply the COUNTIF function with the combination of criteria that allow the formula to neglect the blank and give a total number of cells with some value.

If the criteria we have defined are correct, the Function Arguments box will show the box’s output on the bottom left side. It shows the result of our defined range and criteria as 6.

Also, in the below screenshot, we got a count of cells that are not blank as 6. Cell A6 is blank, so COUNTIF has neglected that cell and given the output of the remaining cell count, which has some value (number or text).

COUNTIF Not Blank in Excel – Example #2

There is another method of using COUNTIF, not blank, which counts all selected cells but not blank by directly editing the cell. For this, go to the edit mode of any cell and press the equal “=” sign, enabling all the inbuilt functions of Excel. Type COUNTIF and select it there, as shown in the screenshot below.

Pressing “=” (Equal sign) in any cell enables all the functions available in Excel. And even if we type selective words (Let’s say “Count”), as shown in the screenshot below, it will give all the possible functions available. From there also, we can select the function as per our requirement.

And press Enter key. We will get the count of cells with the value, “6”, but we selected 7 cells, including cell A6, which is blank. Here also, COUNTIF functions count the total cells that are not blank.

But if we put incorrect criteria, we may get an error message, which will explain the problem, as shown in the screenshot below. Here, we have removed “” (Inverted Commas) from the Criteria and got the error for testing.

Note:

Using “&” in a formula, we can add more criteria per our requirement.

Pros of Excel COUNTIF Not Blank in Excel

Excel’s Countif Not Blank feature efficiently counts non-blank cells, saving time when working with large data sets.

It gives an instant and exact result.

The COUNTIF formula is fully automatic and easy and instant to use.

It is very helpful in accounting work.

Things to Remember

Always check the data if it is migrated output of a different source. There are some chances that the data may contain blank cells with hidden values. In that case, filter the blank cell and delete the cell values to avoid incorrect output.

Always unhide the sheet or column to get the exact result.

Recommended Articles

This has been a guide to COUNTIF, Not Blank in Excel. Here we discuss how to use COUNTIF Function to count Not Blank cells in Excel, with practical illustrations and a downloadable Excel template. You can also go through our other suggested articles –

Rank In Excel (Formula, Examples)

RANK in Excel

The rank function in Excel is used for finding the best sequence position of any selected cell from the given hierarchy or range, which only applies to numbers. And it is because Rank can only be measured in numbers. If we have 5 numbers and want to find the rank (or position) of any number, we simply need to select the range and then choose the order in which rank we want.

RANK Formula in Excel:

Below is the RANK Formula in Excel:

Explanation of RANK Function in Excel

RANK Formula in Excel includes two mandatory arguments and one optional argument.

Number: This is the value or number we want to find the rank.

Ref: This is the list of numbers in a range or in an array you want your “Number” compared to.

[Order]: Whether you want your ranking in Ascending or Descending order. Type 0 for descending and type 1 for ascending order.

Ranking products, people, or services can help you to compare one against another. The best thing is we can see which is at the top, at the average level, and at the bottom.

We can analyze each one of them based on the rank given. If the product or service is at the bottom level, we can study that particular product or service, find the root cause for its poor performance, and take necessary action against it.

Three Different Types of RANK Functions in Excel

If you start typing the RANK function in Excel, it will show you 3 types of RANK functions.

chúng tôi

chúng tôi

RANK

In Excel 2007 and earlier versions, only the RANK Function was available. However, later on, a RANK Function has been replaced by a chúng tôi and chúng tôi functions.

Though the RANK Function still works in recent versions, it may not be available in future versions.

How to Use the RANK Function in Excel?

The RANK Function in Excel is very simple and easy to use. Let us understand the working of the RANK Function in Excel by a RANK Formula example.

You can download this RANK Function Excel Template here – RANK Function Excel Template

Example #1

I have 12 teams that recently participated in the Kabaddi tournament and have team names and their total points in the first two columns.

I had to rank each team when I compared it to other teams on the list.

Since RANK works only for compatibility with earlier versions, I am using chúng tôi function instead of a RANK Function here.

Note: Both work the same way.

Apply the chúng tôi function in cell C2.

So the output will be :

Note: I have not mentioned the order reference. Therefore, excel, by default, ranks in descending order.

=RANK.EQ (B2, $B$2:$B$13) returned a number (rank) of 12. In this list, I have a total of 12 teams. This team scored 12 points, the lowest among all the 12 teams we have considered. Therefore, the formula ranked it as 12, i.e. the last rank.

=RANK.EQ (B3, $B$2:$B$13) returned a number (rank) of 1. This team scored 105 points, the highest among all the 12 teams we have considered. Therefore, the formula ranked it as 1, i.e. first rank.

This is how RANK or chúng tôi function helps us find out each team’s rank when we compare against each other in the same group.

Example #2

One common problem with chúng tôi function is if there are two same values, then it gives the same ranking to both the values.

Consider the below data for this example. I have a batsmen’s name and their career average data.

Apply the chúng tôi function in cell C2, and the formula should be like the below one.

=RANK.EQ(B2,$B$2:$B$6)

So the output will be :

If I apply a RANK formula to this data, Sachin and Dravid get the rank 1.

If the formula finds two duplicate values, it must show 1 for the first-ever value found and the next for the other number.

There are many ways we can find the unique ranks in these cases. In this example, I am using chúng tôi with COUNTIF function.

So the output will be :

The formula I have used here is

=RANK.EQ (B2, $B$2:$B$6) will find the rank for this set.

COUNTIF ($B$2:B2, B2) – 1. The COUNTIF formula will do the magic here. For the first cell, I have mentioned $B$2:B2 means at this range, what is the total count of the B2 value, then deduct that value from 1.

The first RANK returns 1, and COUNTIF returns 1, but since we mentioned -1, it becomes zero; therefore, 1+0 = 1. For Sachin, RANK remains 1.

For Dravid, we got the Rank of 2. Here RANK returns 1, but COUNTIF returns 2, but since we mentioned -1, it becomes 1; therefore, 1 + 1 = 2. The rank for Dravid is 2, not 1.

This is how we can get unique ranks in case of duplicate values.

Things to Remember

RANK replaces a RANK chúng tôi in 2010 and later versions.

A RANK Function in Excel can accept only numerical values. Anything other than numerical values, we will get an error as #VALUE!

If the number you are testing is not present in the list of numbers, we will get #N/A! Error.

The RANK function in Excel gives the same ranking in the case of duplicate values. Anyhow, we can get unique ranks by using the COUNTIF function.

Data need not sort in ascending or descending order to get the results.

Recommended Articles

This has been a guide to RANK in Excel. Here we discuss the RANK Formula in Excel and How to use a RANK Function in Exel, along with practical examples and a downloadable Excel template. You can also go through our other suggested articles –

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