The usual way of writing a formula in excel is to use cell referencing by the default cell references which is a mix of column and row number (For Example A1). However, excel provides an option of naming the cells or a number of cells. After a cell is named, the formula can be written with the cell name rather than the default cell reference. This helps to make the understanding of a formula where the cell name is used more understandable. It actually makes the formula self-explanatory to other users. (Mehta, n.d.) Example:
Normal View
| Particulars | Amount |
|---|---|
| Revenues of Gulf Air ( In Million US$) | 70 |
| Number of Passengers ('000) | 38 |
| Revenue per 1000 passenger ( In Million US$) | 1.84 |
Formula View
| Particulars | Amount |
|---|---|
| Revenues of Gulf Air ( In Million US$) | 70 |
| Number of Passengers ('000) | 38 |
| Revenue per 1000 passenger ( In Million US$) | =Revenue/Passengers |
Showing negative numbers in red color and inside bracket has been a common pattern in financial models prepared in excel. One can show a number in the above format through the following steps:
(Finance Train, n.d.) Example:
| Loss | (5000.00) |
|---|
ÂÂ