tutorial 4 analyzing and charting financial data

Microsoft Excel 2013® ®

Tutorial 4Analyzing and Charting Financial Data

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New Perspectives on Microsoft Excel 2013 2

Objectives• Use the PMT function to calculate a loan

payment• Create an embedded pie chart• Apply styles to a chart• Add data labels to a pie chart• Format a chart legend• Create a clustered column chart• Create a stacked column chart

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Objectives• Create a line chart• Create a combination chart• Format chart elements• Modify the chart’s data source• Add sparklines to a worksheet• Format cells with data bars• Insert a watermark

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Visual Overview: Chart Elements

XPXPXPIntroduction to Financial Functions• Excel provides a wide range of financial

functions related to loans and investments:– The PMT function can be used to calculate the

installment payment and payment schedule required to completely repay a loan

– Future value– Present value– Calculating the interest part of a payment– Calculating the principle part of a payment– Loan interest rate


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Introduction to Financial Functions

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Introduction to Financial Functions• Cost of a loan to the borrower is largely based

on three factors:–Principal: amount of money being loaned– Interest: amount added to the principal by

the lender– Time required to repay the loan

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Introduction to Financial FunctionsFunction Use to determine…FV (future value) How much an investment will be worth after a series of

monthly payments at some future time

PMT (payment) How much you have to spend each month to repay a loan or mortgage within a set period of time

IPMT (interest payment)

How much of your monthly loan payment is used to pay the interest

PPMT (principal payment)

How much of your monthly loan payment is used for repaying the principal

PV (present value) Largest loan or mortgage you can afford given a set monthly payment

NPER (number of periods)

How long it will take to pay off a loan with constant monthly payments

RATE The interest rate of a loan or an investment based on periodic, constant payments

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• Using the PMT Function– To calculate the costs associated with a loan,

you must have the following information:• The annual interest rate• The number of payment periods per year• The length of the loan in terms of the total

number of payment periods• The amount being borrowed• When loan payments are due

XPXPXPIntroduction to Financial Functions


• The syntax of the PMT function is:

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XPXPXPCreating a Chart• Charts show trends or relationships in data

that are easier to see in a graphic representation rather than viewing the actual numbers or data

• Creating a chart is a several-step process:– Selecting the data to display in the chart– Choosing the chart type– Moving the chart to a specific location– Sizing the chart– Formatting the chart’s appearance


XPXPXPCreating a Chart• Selecting a Chart’s Data Source– A data source includes one or more data series and

a series of category values– A data series contains the actual values that are

plotted on the chart– Category values provide descriptive labels for each

data series or data value; usually located in the first column or first row of the data source


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Creating a Chart

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New Perspectives on Microsoft Excel 2013

Creating a Chart• Exploring Chart Types and Subtypes– Excel provides 53 types of charts organized into the

10 categories – Each category includes variations of the same chart

type, which are called chart subtypes– You can design your own custom chart types to

meet the specific needs of your reports and projects

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XPXPXPCreating a Chart


XPXPXPCreating a Chart• Exploring Chart Types and Subtypes– A pie chart is a chart in the shape of a circle

divided into slices like a pie• Each slice represents a single value from a data series• Larger data values are represented with bigger pie slices• The relative sizes of the slices let you visually compare

the data values and see how much each contributes to the whole

– Pie charts are most effective with six or fewer slices, and when each slice is large enough to view easily


XPXPXPCreating a Chart• Inserting a Pie Chart with the Quick Analysis

Tool– After you select an adjacent range to use as a

chart’s data source, the Quick Analysis tool appears

– The Quick Analysis tool includes a category for creating charts

– The CHART category lists recommended chart types—the charts that are most appropriate for the data source you selected


XPXPXPCreating a Chart• Inserting a Pie Chart with the Quick Analysis

Tool1. Make sure the correct range is selected2. Click the Quick Analysis button in the lower-right

corner of the selected range 3. Click the CHARTS category4. Click Pie to select the pie chart


XPXPXPCreating a Chart


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Creating a Chart• Moving and Resizing Charts– Excel charts are either placed in their own chart

sheets or embedded in a worksheet– When you create a chart, it is embedded in the

worksheet that contains the data source– Selecting the chart displays:• A selection box (used to move or resize the chart)• Sizing handles (used to change the chart’s width and

height)

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Creating a Chart

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XPXPXPWorking with Chart Elements• Every chart contains elements that can be

formatted, added to the chart, or removed from the chart

• The Chart Elements button is used to add, remove, and format individual elements

• When you add or remove a chart element, the other elements resize to fit in the space

• Live Preview shows how changing an element will affect the chart’s appearance


XPXPXPWorking with Chart Elements


XPXPXPWorking with Chart Elements• Choosing a Chart Style– When you create a chart, the chart is formatted

with a style (a collection of formats)– In the pie chart created, the format of the chart

title, the location of the legend, and the colors of the pie slices are all part of the default style

– You can quickly change the appearance of a chart by selecting a different style from the Chart Styles gallery

– Live Preview shows how a chart style will affect the chart


XPXPXPWorking with Chart Elements• Formatting the Pie Chart Legend– You can fine-tune a chart style by formatting

individual chart elements– From the Chart Elements button, you can open a

submenu for each element that includes formatting options, such as the element’s location within the chart

– You can also open a Format pane, which has more options for formatting the selected chart element

– The Chart Elements button also provides access to the Format pane with more design options


XPXPXPWorking with Chart Elements• Formatting Pie Chart Data Labels– Modify the content and appearance of data labels• Move the labels to the center of the pie slices or place

them outside of the slices• Set the labels as data callouts• Change the text and number styles used• Drag and drop individual data labels, placing them

anywhere within the chart

– When a data label is placed far from its pie slice, a leader line is added to connect the data label to its pie slice


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Working with Chart Elements

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XPXPXPWorking with Chart Elements• Setting the Pie Slice Colors– A pie slice is an example of a data marker that

represents a single data value from a data series– You can format the appearance of individual data

markers to make them stand out from the others– Pie slice colors should be as distinct as possible to

avoid confusion– Depending on the printer quality or the monitor

resolution, it might be difficult to distinguish between similarly colored slices or data


XPXPXPWorking with Chart Elements• Formatting the Chart Area– The chart’s background (called the chart area) can

be formatted using:• Fill colors• Border styles• Special effects such as drop shadows and blurred edges

– The chart area fill color used in the pie chart is white, which blends in with the worksheet background


XPXPXPPerforming What-If Analyses with Charts• A chart is linked to its data source• Changes made to the data source affect the

chart; a visual representation of changes• Makes charts a powerful tool for data

exploration and what-if analysis• Excel uses chart animation to slow down the

effect of changing data source values, making it easier to see how changing one value affects the chart


XPXPXPPerforming What-If Analyses with Charts• Another type of what-if analysis is to limit the

data to a subset of the original values in a process called filtering

• Rather than creating a new chart, you can filter an existing chart to only show specific data


XPXPXPPerforming What-If Analyses with Charts


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Creating a Column Chart• Column chart– Displays values in different categories as columns– Height of each column is based on its value

• Bar chart– Column chart turned on its side– Length of each bar is based on its value

• Better to use column and bar charts than pie charts when the number of categories is large or the data values are close in value

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Creating a Column Chart• Better to use column and bar charts than pie

charts when the:– Number of categories is large– Data values are close in value

• Easier to compare height or length than area• Column charts can include several data series

XPXPXPCreating a Column Chart


• Comparing Column Chart Subtypes– Column and bar charts can display multiple data

series– You can plot three data series against one category

XPXPXPCreating A Column Chart• Comparing Column Chart Subtypes– The clustered column chart displays the data

series in separate columns side-by-side so that you can compare the relative heights of the columns The stacked column chart places the data series values within combined columns showing how much is contributed by each series

– The 100% stacked column chart makes the same comparison as the stacked column chart except that the stacked sections are expressed as percentages


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Creating a Column Chart• Creating a Clustered Column Chart

1. Select data source2. Select type of chart to create3. Move and resize the chart4. Change chart’s design, layout, and format by:• Selecting one of the chart styles, or• Formatting individual chart elements

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Creating a Column Chart• Moving a Chart to a Different Worksheet– Can move a chart from one worksheet to another

or place the chart in its own chart sheet– In a chart sheet, the chart is enlarged to fill the

entire workspace– The Move Chart dialog box provides options for

moving charts between worksheets and chart sheets

– You can cut and paste a chart between workbooks

XPXPXPCreating a Column Chart• Changing and Formatting a Chart Title– When a chart has a single data series, the name of

the data series is used for the chart title– When a chart has more than one data series, the

“Chart Title” placeholder appears as the temporary title of the chart

– You can replace the placeholder text with a more descriptive title


XPXPXPCreating a Column Chart


XPXPXPCreating a Column Chart• Creating a Stacked Column Chart


XPXPXPVisual Overview: Charts, Sparklines, and Data Bars


XPXPXPCreating a Line Chart• Line charts are typically used when the data

consists of values drawn from categories that follow a sequential order at evenly spaced intervals

• Like column charts, a line chart can be used with one or more data series

• When multiple data series are included, the data values are plotted on different lines with varying line colors


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Creating a Line Chart • Displays data values using a connected line

rather than columns or bars

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XPXPXPWorking with Axes and Gridlines• A chart’s vertical and horizontal axes are based

on the values in the data series and the category values

• In many cases, the axes display the data in the most visually effective and informative way

• Sometimes you will want to modify the axes’ scale, add gridlines, and make other changes to better highlight the chart data


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Working with Axes and Gridlines• Editing the Scale of the Vertical Axis– Range of values (scale) of an axis is based on the

values in the data source– Vertical (value) axis: range of values in the data– Horizontal (category) axis: category values– Excel divides the scale into regular intervals,

marked on the axis with tick marks and labels• More tick marks at smaller intervals could make the

chart difficult to read • Fewer tick marks at larger intervals could make the

chart less informative

XPXPXPWorking with Axes and Gridlines • Editing the Scale of the Vertical Axis– Major tick marks identify the main units on the

chart axis– Minor tick marks identify the smaller intervals

between the major tick marks– Some charts involve multiple data series• Plot one data series against a primary axis, which

usually appears along the left side of the chart• Plot the other against a secondary axis, which is usually

placed on the right side of the chart• The two axes can be based on entirely different scales


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Working with Axes and Gridlines

XPXPXPWorking with Axes and Gridlines • Adding Gridlines– Gridlines are horizontal and vertical lines that help

you compare data and category values• Gridlines may or may not appear in a chart• You can add or remove them separately

– Gridlines are placed at the major tick marks or can be set to appear at the minor tick marks

– The chart style used for the two column charts and the line chart includes horizontal gridlines

– You can add vertical gridlines to help further separate one set of values from another


XPXPXPWorking with Axes and Gridlines • Working with Column Widths– You can set the spacing between one column and

another in your column charts– You can define the width of the columns


XPXPXPFormatting Data Markers


• Each value from a data series is represented by a data marker:– Individual pie slices in pie charts– Columns in column charts– Points connected by the line in a line chart

XPXPXPFormatting the Plot Area• The plot area includes only that portion of the

chart in which the data markers have been placed or plotted

• You can format the plot area by changing its fill and borders, and by adding visual effects

• Changes to the plot area are often madein conjunction with the chart area


XPXPXPFormatting the Plot Area


XPXPXPCreating a Combination Chart• A combination chart combines two chart types

within a single chart• Enable you to show two sets of data using the

chart type that is best for each data set• Can have data series with vastly different

values• You can create dual axis charts, using primary

and secondary axes


XPXPXPCreating a Combination Chart


XPXPXPCreating a Combination Chart• Working with Primary and Secondary Axes– When a chart has primary and secondary vertical

axes, it is helpful to identify exactly what each axis is measuring

– Add an axis title (a descriptive text that appears next to the axis) to the chart

– You can add, remove, and format axis titles


XPXPXPCreating a Combination Chart


XPXPXPEditing a Chart Data Source• To modify a Chart’s Data Source:– Click the chart to select it– On the CHART TOOLS DESIGN tab, in the Data

group, click the Select Data button– In the Legend Entries (Series) section click the Add

button or the Remove button– Click the Edit button in the Horizontal (Category)

Axis Labels section to select the category values for the chart


XPXPXPEditing a Chart Data Source


XPXPXPCreating Sparklines• A sparkline is a chart that is displayed entirely

within a worksheet cell• Sparklines are compact in size; don’t include

chart elements (legends, titles, or gridlines)• The goal of a sparkline is to convey the

maximum amount of information within a very small space

• Sparklines are useful when you don’t want charts to overwhelm the rest of your worksheet or take up valuable page space


XPXPXPCreating Sparklines• You can create the following three types of

sparklines:– A line sparkline for highlighting trends– A column sparkline for column charts– A win/loss sparkline for highlighting positive and

negative values


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Creating Sparklines

• Three types of sparklines:– Line sparkline:

Highlights trends– Column sparkline:

For column charts– Win/Loss sparkline:

Highlights positive and negative values

XPXPXPCreating Sparklines


XPXPXPCreating Sparklines• Formatting the Sparkline Axis– You can change the scale of the vertical axis– The vertical axis will range from the minimum

value to the maximum value– You can change the vertical axis scale to be the

same for the related sparklines


XPXPXPCreating Sparklines• Working with Sparkline Groups– The sparklines in the location range are part of a

single group– Clicking any cell in the location range selects all of

the sparklines in the group– Any formatting applied to one sparkline affects all

of the sparklines in the group (ensures that the sparklines for related data are formatted consistently)

– To format each sparkline differently, you must first ungroup them


XPXPXPCreating Sparklines


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Creating Data Bars• Conditional format that adds a horizontal bar to

background of a cell containing a number• Length based on value of each cell in the range• Dynamic—the lengths of data bars automatically

update if cell’s value changes

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Creating Data Bars• Modifying a Data Bar Rule– Modify by altering rules of the conditional format

XPXPXPInserting a Watermark


• A watermark is text or an image that appears in the background behind other content

• Insert into the header or footer of a worksheet

tutorial 4 analyzing and charting financial data

Documents

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