In this chapter, we will introduce the most useful functions commonly used in financial modelling. Whilst there are hundreds of functions that can be used in a model, I have attempted to only list the ones you are most likely to come across, and that you will find most useful when building models. Please don’t stop here, though! There are many more wonderful Excel functions that you will find useful in your financial modelling and business analysis.
COUNTIF, SUMIF, COUNTIFS, and SUMIFS are very handy functions to know for modelling. They add or count ranges of data.
COUNTIF is used to count the cells that match specified criteria.
For example, let’s say you have sold $497 worth of different products on a particular day, as shown in Figure 6.1.
You’d like to know how many (in terms of number of products) you’ve sold of each product: books, CDs, and DVDs.