I made this video in 5 minutes at my kitchen table one afternoon and forgot about it for literally 4 years. Still can't believe how many people watched it. Thank you 🙏
Thanks for responding to my email on a Sunday within 2 hours! You really helped me out today and I look forward to accessing your coursework in the future.
Eric, I set up the table just like you do in the video and followed the steps to the letter, but after I input the variables into the Data Table and click OK the OP remains the same at $4000 under each assumption.. I am using Excel 2016 as a part of the Microsoft 365 suite. What's wrong?
@I'mBatman You just helped me out, I had the same problem! The table has to be fed a function for that top left cell, not straight data. You can't just type it in, gotta build the formulas starting from your assumptions and feed the table with that.
Hi Clarence - I see you all helped each other in the comments, nice work! Yes you need to enter the formulas for the revenue, cost, and profit part. Also, you'll see that I included a link to download the file in the description. So if you have any other questions you can just download it and take a look. Cheers.
Yes here is another video I have on sensitivity analysis for finance: ruclips.net/video/OU9JUBbiiWg/видео.htmlsi=-h3dialK-8jf8s1_ Stress testing operational risks is basically just playing around with the assumptions in your model (higher sales, increased costs, etc) to see where the business is sensitive and at risk of large declines in profits. I show that in the video I linked to.
Hi, Eric. Good day. I used the excel file you leave in the caption box for us. When I repeat the process you just did on this content, I get the same values of 40,000. I make sure that all the formulas in the income statement are intact and the data I feed on the data table comes from the output cells- the ones that are formulated. Please help me understand
Excellent stuff Eric. Thanks for making it quick and easy to understand. Additional question - will the data table change as some of the other values are changed or must the analysis be run after each change.
My pleasure - so yes you can change the hard coded assumptions along the column and row and the data table will update, but if you change any of the cells inside the table or the anywhere else in the model you will need to delete the contents of the table and re-run the function.
Most likely you are not writing the formulas correctly in the model. Make sure that everything is formulas, EXCEPT for your assumptions, those are hard-coded. Feel free to download the practice file for free in the description to cross reference! Cheers
@@eric_andrews I have the same problem as Nick. I downloaded your practice file and I am able to generate the what-if analysis. I notice your file only has the operating profit as a formula and that is exactly what I have on my file. Any other suggestions?
@@eric_andrews Oh, I see now (0:55 to 1:08). The Profit and Loss parameters all tie back to the assumptions through the background formulas. Pardon the ignorance, I am less than a novice, is there any way to derive CIs from this SA?
Thanks Eric! Very clear explanation. I have some questions regarding your keyboard shortcut operations. I saw you quickly removed two decimal places, but with alt key, and H and 9, you can only remove 1 decimal places. How did you manage to remove two decimals in only one or two press on keyboard? Thanks for your help!
Hey! Love your videos. Straight to the point and easy to pick up. However, Im having trouble trying to understand how does this table derive its numbers?
Thanks for the question and compliment 😁! Excel has basically a small program (the data tables in the "what if analysis" section) that takes our model, and re-calculates it (in this case, we tell it to re-calculate profit) in situations where we change the assumptions. So you could get all these numbers in the table by manually entering a "units sold" and "price" number one-by-one to see the different profits in each situation, but the table allows us to do that lots of times automatically. Make sense?
@@eric_andrews hey thanks for the speedy reply!! So am I right to say the data generated are the operating profit, from the different units and price as per the column and rows of the table?
I made this video in 5 minutes at my kitchen table one afternoon and forgot about it for literally 4 years. Still can't believe how many people watched it. Thank you 🙏
Old is Gold!!! 🪙
@@sudeepm8096hahaha
fr
I've never seen a RUclips video that is so precise, concise and straight to the point before. Thank you, Eric
Very, very happy to hear it. Cheers!
You explained everything so clearly and didn't waste any time! Everything so precise.
I'm so happy to hear that you were able to learn some new concepts quickly. Cheers Snigdha!
No matter how much experience you have using Excel, there's always something new to learn 👍
This is one of the most precise and succinct Excel RUclips tutorial that I have watched, thank you
Really appreciate the comment cheers!
The part where the data table self populated blew my mind. Thank you Eric
Thank you for using a simple example to demonstrate a potentially complicated process!! Really appreciate.
As a Chinese, his English still make sense to me to understand how to use Excel Table function to solve practical problems/assignments. Many thanks!
That's great to hear it was easy to understand. Thanks for the comment 😁
gg bang erik kamu sangat membantu tugas akhir aku bang semangat ngontennya !
thanks I was looking for this explanation online for an hour
thankyou. this is more simple than the other i've been watch...
You're welcome!
What. A. Great. Example. Simple. Clear. Great! Thank you, Eric. -Jordi
My pleasure Jordi really appreciate the comment.
@@eric_andrews And... here I am, 2 years later, just weeks from finishing my MBA, watching your video again! :) Cheers. -J
@@jordiortega4436 haha, sounds like we've both come a long way in 2 years, good luck!
Simple and direct.. Thanks Eric
My pleasure!
so helpful for my finance Assignment
Thank you Eric, that was useful and easy to follow
ive seen this video like 15 times :D (lifesaver each time)
This is an excellent example for my son. I wanted a simple examp,e to introduce the concept to him.
you are making my life easier
Thanks man :)
Thank you for this. Literally a saviour!
Glad it helped!
Thanks you this is awesome. I hope you have a wonderful life.
My guy! Thanks a lot Eric
Great Video. Clearly explained! Thank you !
Thanks - very helpful and straightforward!
The video is a very good example. this type of analysis will need some marketing facts as well in order to find the best price strategy.
Those are exactly the type of situations you should use this analysis for. Great point suzy!
Very instructive video, thanks you so much for teaching.
You are very welcome William!
Short easy clear and crisp
Awesome - glad you found it helpful.
Super helpful! Thank you!
Dude I love you 💕....
You explained the complex topic with lots of ease....
Happy to help 😀 thanks Danish!
Love your work
Great video, short and simple, cool :)
Thanks for responding to my email on a Sunday within 2 hours! You really helped me out today and I look forward to accessing your coursework in the future.
Hi Tim - no problem! Just let me know if you have any more questions.
Great video! This is a really cool way to use What If analysis. I just subscribed. Thank you.
Really glad to hear it ! Thanks for the sub 🙏
Thanks so much, Eric!
You got it!
I got a job in investment banking because of you! Thank you u a legend!!!
Wow really happy to hear it. Which videos helped you most in the interviews?
Very clear, simple presentation. Thank you.
Glad you liked it
very concise and precise. thanks
This was very helpful Thank you
A qui empezó la leyenda
Great Explanation! thank you
Happy to help mauricio!
Very easy to understand. Good job!
Glad you think so!
Wow! Thank you so much.....easy and precise!
Glad it was helpful Noreen!
I follow, the others, Thank you, fine training!
Thanks Eric. It was effective
Thanks. Easily Understood.
Excellent video! Conveyed the content clearly and efficiently.
Glad you enjoyed it Vignesh!
Very informative. Thank you !!
You are welcome Reggie!
makasi bang erik aku sangat terbantu dengan penjelasan abang 😀
very helpful. Thank you
Great tutorial!
Thank you! Cheers!
Great job Sir🙏🏼
My pleasure Hairy!
You're the man!😇
Very helpful and clear, thank you!👍
Glad to hear that!
Thankyou !, after a lot of struggle I got the video that I was looking for.
Glad it helped mudit!
so good and very easy to comprehend, concise!! Thank youuu
Glad it was helpful!
Very helpful! thanks!
You're welcome Malama!
Hi, This was very easy , crisp and concise. Thank you!
Glad it was helpful Luvnica!
Thanks, Eric
Thanks for the video.
You're welcome!
Dude , That was point blank. Thanks
Glad it helped
Andrew - awesome video! Clear Explanation!
Thanks for watching!
Glad you liked it! Thanks CJ Dix!
Helpful thank you!
great video! Love kind of short lessons. Thank you and waiting more ones like that!
Working on more! I'm glad you appreciated the short length of the video. Thanks for watching.
Eric, I set up the table just like you do in the video and followed the steps to the letter, but after I input the variables into the Data Table and click OK the OP remains the same at $4000 under each assumption.. I am using Excel 2016 as a part of the Microsoft 365 suite.
What's wrong?
@I'mBatman You just helped me out, I had the same problem! The table has to be fed a function for that top left cell, not straight data. You can't just type it in, gotta build the formulas starting from your assumptions and feed the table with that.
Thank you for the help batman
Hi Clarence - I see you all helped each other in the comments, nice work! Yes you need to enter the formulas for the revenue, cost, and profit part. Also, you'll see that I included a link to download the file in the description. So if you have any other questions you can just download it and take a look. Cheers.
Thank you very much
Thanks Eric for this video.
thanks for the explanation
You bet!
I love Eric
Thank you, very useful video
I'm glad, thanks robert!
Dear Eric, could you please explain how to use sensitivity analysis for stress testing of operational risks?
Yes here is another video I have on sensitivity analysis for finance: ruclips.net/video/OU9JUBbiiWg/видео.htmlsi=-h3dialK-8jf8s1_
Stress testing operational risks is basically just playing around with the assumptions in your model (higher sales, increased costs, etc) to see where the business is sensitive and at risk of large declines in profits. I show that in the video I linked to.
Thank you Eric. That was useful.
No problem. I'm glad it was helpful!
Thank You!
This was very helpful, thanks!!!
My pleasure Nick!
really useful!!!
Hey ur a legend
Thank you for clearly explaining!
I'm glad you learned something. Cheers!
Hi, Eric. Good day. I used the excel file you leave in the caption box for us. When I repeat the process you just did on this content, I get the same values of 40,000. I make sure that all the formulas in the income statement are intact and the data I feed on the data table comes from the output cells- the ones that are formulated.
Please help me understand
I was so lost on my homework before, thank you!
Haha awesome, my pleasure!
Excellent! Thanks
Glad it helped!
Excellent stuff Eric. Thanks for making it quick and easy to understand. Additional question - will the data table change as some of the other values are changed or must the analysis be run after each change.
My pleasure - so yes you can change the hard coded assumptions along the column and row and the data table will update, but if you change any of the cells inside the table or the anywhere else in the model you will need to delete the contents of the table and re-run the function.
thank you!
it's good. i learned easily than i expected. thank you
Awesome news!
you deserve the Subscribed. perfect
Wow, thanks Ahmed!!
thank you this is perfect!!
Thanks! Glad it helped you!
Great video! However when I follow the exact steps using my figures, I just end up with the same number across the table? Any tips? Thanks
Most likely you are not writing the formulas correctly in the model. Make sure that everything is formulas, EXCEPT for your assumptions, those are hard-coded. Feel free to download the practice file for free in the description to cross reference! Cheers
This is what happened to me as well, I followed the example and did mine but the excel generated the same figure all through the cells.
@@eric_andrews I have the same problem as Nick. I downloaded your practice file and I am able to generate the what-if analysis. I notice your file only has the operating profit as a formula and that is exactly what I have on my file. Any other suggestions?
@@eric_andrews Oh, I see now (0:55 to 1:08). The Profit and Loss parameters all tie back to the assumptions through the background formulas. Pardon the ignorance, I am less than a novice, is there any way to derive CIs from this SA?
Thanks Eric! Very clear explanation. I have some questions regarding your keyboard shortcut operations. I saw you quickly removed two decimal places, but with alt key, and H and 9, you can only remove 1 decimal places. How did you manage to remove two decimals in only one or two press on keyboard? Thanks for your help!
Sure! Just do that same sequence a second time, or, you can tap F4 which will repeat your previous sequence - a nice trick!!
TY sir.
God Bless You, Thank you!
You too!
Brilliant
very helpful
Happy to help!
Thanks so much👌🏽
My pleasure - thanks for the comment!
Hey! Love your videos. Straight to the point and easy to pick up. However, Im having trouble trying to understand how does this table derive its numbers?
Thanks for the question and compliment 😁! Excel has basically a small program (the data tables in the "what if analysis" section) that takes our model, and re-calculates it (in this case, we tell it to re-calculate profit) in situations where we change the assumptions. So you could get all these numbers in the table by manually entering a "units sold" and "price" number one-by-one to see the different profits in each situation, but the table allows us to do that lots of times automatically. Make sense?
@@eric_andrews hey thanks for the speedy reply!! So am I right to say the data generated are the operating profit, from the different units and price as per the column and rows of the table?
@@purpledinosaur5636 Yes that's exactly right. You got it!
@@eric_andrews awesome!! Thank you so much :-)
please do scenario analysis for the same variables used above
is it possible to have a sensitivity analysis for service companies?
Of course. You can sensitize anything!
@@eric_andrews how?
Can you please make a video on MOTAD
Hey there, what if you're trying to do a sensitivity table that has only one input?
Now I know what that button is for. Thank you!
Lol - my pleasure! Thanks for watching!
Thanks, this is so simply and nicely explained. How do i do the same modeling for 3 variables-Price, cost and vol all within the same table?
Not possible unfortunately. You'll need to build a few different sensitivity tables looking at 2 variables at a time. Hope that helps
Thanks
simple thanks you
Absolutely!
Sorry, can I set different variable of chairs sold and price, just like up&down 500 or the variable was fixed in 250? Thanks