There are many reasons why we need to break source, Excel external links. In most cases, it is merely source, external data referenced in cells of a financial model. In these instances it is quite simple to break these external links. However breaking external links in other cases will not be so obvious and easy, because other elements of the spreadsheet are referencing such links.
This article addresses the needs of an advanced Waterfall Chart, which must chart both positive and negative financial KPIs. The flexibility of Excel and the added complexity required, in order to chart negative numbers in a Waterfall Chart, means there are a variety of ways to chart both positive and negative values.
This follow-up article to “How to create a Waterfall Chart in Excel”, adds a dynamic drop-down list to enable users to change the source time series period of the Waterfall Chart. A dynamic Waterfall Chart delivers flexibility, which a static Waterfall Chart is unable to offer the users of a financial model.
The Excel Data Table “What-if Analysis” tool is one of the most powerful, yet underutilised functions in Excel. It is a great way to deliver a high-level, informative what if analysis of a company’s financial position such as its Net Present Value (NPV) from a Discounted Cash Flow (DCF) schedule.