Formulae

In this lesson

1. 0:00 Introduction to spreadsheet formulas
2. 1:02 Basic formula principles and syntax
3. 2:12 Simple calculations with cell references
4. 3:26 Mathematical operations and order of calculation
5. 4:18 Percentages and averages in formulas
6. 5:29 Powers and roots in spreadsheet calculations
7. 6:45 Absolute cell references and locking cells
8. 8:23 What-if analysis and sensitivity testing
9. 10:16 Advantages and disadvantages of spreadsheets
10. 13:35 Worked example: management accounts formulas

About this lesson

This video covers the fundamental principles of formula syntax, mathematical operators, and practical applications you'll use constantly in financial roles and ACCA papers. By mastering formulas, you'll work faster, reduce errors, and unlock the full power of spreadsheets for budgeting, forecasting, and financial analysis. The session walks through the essentials: starting every formula with an equals sign, using basic operators (addition, subtraction, multiplication, division), and understanding how spreadsheet software applies mathematical rules to calculate results in the correct order. You'll see how to work with percentages, calculate averages, and use the power function for more complex calculations. Crucially, you'll learn about absolute references—using dollar signs to lock a cell so it never changes when you drag a formula down or across—a technique that's invaluable when building budgets or financial models. The video also explores what-if and sensitivity analysis, showing how tweaking inputs in one cell instantly recalculates outputs across your entire spreadsheet. This allows you to test different scenarios—best case, worst case, expected case—and present multiple options to management. You'll see real worked examples using management accounts data, calculating gross profit, gross profit margin, and percentage changes, so you understand exactly how to apply these concepts to the types of problems you'll face in your qualification and career.

Duration: 17m