Easy-to-follow video tutorials help you learn software, creative, and business skills.Become a member

Calculating the number of days between events

From: Excel 2007: Financial Analysis

Video: Calculating the number of days between events

Excel 2007 gives you many tools to calculate the number of calendar days or the number of working days between two dates. When you calculate the number of working days, Excel excludes weekends automatically. But you also need to maintain a list of business holidays so the functions can leave them out as well. I want to stress that it is absolutely vital that you store the dates in cells with the Time/Date format and not as text. I have done that in this worksheet, which I'm using as my example. I have an Initiation Date and a Maturity Date for an investment and you'll notice that these cells both have the date format that is absolutely vital.

Calculating the number of days between events

Excel 2007 gives you many tools to calculate the number of calendar days or the number of working days between two dates. When you calculate the number of working days, Excel excludes weekends automatically. But you also need to maintain a list of business holidays so the functions can leave them out as well. I want to stress that it is absolutely vital that you store the dates in cells with the Time/Date format and not as text. I have done that in this worksheet, which I'm using as my example. I have an Initiation Date and a Maturity Date for an investment and you'll notice that these cells both have the date format that is absolutely vital.

If you want to determine the total number of days between two dates, all you need to do is subtract one date from the other. So in this case, we have the later date of December 24th that's in cell B5, when we subtract the initiation date which is in cell B3 and we find that we have 174 days, but that includes weekends and holidays. How about if you want to determine the number of working days between those two dates? For that, you use the NETWORKDAYS function. So you type in =NET and then you have the start date which is the earlier date and that is in cell B3, and end date which is in cell B5 and then a list of holidays.

Now, I can't switch over to the worksheet right now because I'm in the middle of entering a formula but the holidays are on the Holidays worksheet in a table called Holidays2010. So what I'll do is I'll just start typing in the name of the table, holidays, and there you see Holidays2010, and they are in the Holiday column. So I have completed the formula, hit Return and you'll see that you have 119 working days between July 3rd and December 24th of 2010. Now, let's say that you want to determine the next workday after December 24th of 2010.

The next calendar day is December 25th and that's Christmas, a holiday in the United States. So that will not be a working day. To find the next working day after a given number of working days, excluding weekends and dates identified as holidays, you use the WORKDAY function. Now, when I enter the formula as you would expect, workday, start date in cell B3, the number of days which is in cell B9 and then the list of holidays which are in the Holidays2010 table in the Holidays column.

You get an incorrect result. Instead of getting the workday after December 24th, you get the day prior to that. So what happened? Let's take a look at the formula and it appears to be right, but what's happening is that Excel is counting the initiation date, July 3rd, as the first day. So what you need to do is add one to the working days total. So that value comes from cell B9 in this case. So you type +1, hit Return and you get the next working day which is December 27th, the Monday after Christmas.

Finally, some financial calculations require you to use a 360-day calendar. That assumes a 30-day month and 12 months a year. You'll use a 360-day calendar for some bond transactions and also for loans between banks. To calculate the number of days between two dates using a 360-day calendar, you use the DAYS360 function. So to determine the number of days between our initiation date and our maturity date, using a 360-day calendar, we use the start date, E3, the end date of B5 and the method we leave blank because we'll be using the default which is 360, 30 days, 12 months and Return.

And we'll find that using that system, we have 171 days between our initiation date and our maturity date. Working with dates in Excel does seem confusing at first, but most of the time, you can use the techniques in this lesson to determine the number of days you have to complete the task or for an investment to mature.

Show transcript

This video is part of

Image for Excel 2007: Financial Analysis
Excel 2007: Financial Analysis

51 video lessons · 13869 viewers

Curt Frye
Author

 
Expand all | Collapse all
  1. 2m 6s
    1. Welcome
      1m 8s
    2. Using the exercise files
      32s
    3. Disclaimer
      26s
  2. 13m 20s
    1. Separating inputs and formulas
      2m 2s
    2. Avoiding common mistakes
      5m 39s
    3. Tracing formula precedents and dependents
      2m 52s
    4. Evaluating Excel formulas step by step
      2m 47s
  3. 18m 40s
    1. Tracking income and expenses using an Excel table
      3m 29s
    2. Creating a Pivot Table from table data
      3m 36s
    3. Pivoting a Pivot Table
      2m 22s
    4. Filtering a Pivot Table
      3m 11s
    5. Adding Pivot Table columns to enhance data analysis
      3m 5s
    6. Tracking cash flow using a Pivot Chart
      2m 57s
  4. 18m 48s
    1. Reading a corporate financial statement
      6m 1s
    2. Introducing common-sizing strategies for analyzing financial statements
      3m 59s
    3. Creating common-sized income statements
      3m 1s
    4. Creating common-sized balance sheets
      2m 53s
    5. Calculating percentage changes in financial statements
      2m 54s
  5. 8m 12s
    1. Calculating earnings per share
      1m 54s
    2. Calculating return on equity and return on assets
      2m 50s
    3. Calculating gross profit margin and net profit margin
      3m 28s
  6. 6m 19s
    1. Calculating the current ratio and quick ratio
      2m 47s
    2. Calculating the average collection period
      1m 56s
    3. Calculating inventory turnover
      1m 36s
  7. 6m 12s
    1. Calculating the equity ratio
      1m 26s
    2. Calculating the debt ratio
      2m 57s
    3. Calculating the times interest earned ratio
      1m 49s
  8. 10m 58s
    1. Calculating simple interest and compound interest
      3m 36s
    2. Applying nominal versus effective interest rates (APR versus APY)
      3m 21s
    3. Calculating the number of days between events
      4m 1s
  9. 13m 32s
    1. Computing the future value of an investment
      3m 30s
    2. Calculating present value
      2m 29s
    3. Calculating net present value
      2m 42s
    4. Calculating internal rate of return
      2m 24s
    5. Calculating NPV and IRR for uneven input periods (XNPV and XIRR)
      2m 27s
  10. 7m 30s
    1. Projecting future results using the Forecast function
      2m 9s
    2. Performing quick forecasts using the Fill handle
      2m 57s
    3. Adding a trendline to a chart
      2m 24s
  11. 22m 28s
    1. Introducing amortization
      2m 20s
    2. Calculating payments on a fully amortized loan
      2m 21s
    3. Calculating payments on a partially amortized loan (balloon payments)
      2m 4s
    4. Calculating interest and principal components of loan repayments
      5m 32s
    5. Introducing depreciation
      2m 1s
    6. Calculating straight line depreciation
      1m 30s
    7. Calculating declining balance depreciation
      3m 24s
    8. Calculating double declining balance depreciation
      3m 16s
  12. 9m 34s
    1. Introducing bonds and bond terminology
      1m 37s
    2. Calculating a bond's yield
      2m 15s
    3. Calculating the value of zero coupon bonds
      3m 18s
    4. Pricing bonds to be offered to investors
      2m 24s
  13. 23s
    1. Goodbye
      23s

Start learning today

Get unlimited access to all courses for just $25/month.

Become a member
Sometimes @lynda teaches me how to use a program and sometimes Lynda.com changes my life forever. @JosefShutter
@lynda lynda.com is an absolute life saver when it comes to learning todays software. Definitely recommend it! #higherlearning @Michael_Caraway
@lynda The best thing online! Your database of courses is great! To the mark and very helpful. Thanks! @ru22more
Got to create something yesterday I never thought I could do. #thanks @lynda @Ngventurella
I really do love @lynda as a learning platform. Never stop learning and developing, it’s probably our greatest gift as a species! @soundslikedavid
@lynda just subscribed to lynda.com all I can say its brilliant join now trust me @ButchSamurai
@lynda is an awesome resource. The membership is priceless if you take advantage of it. @diabetic_techie
One of the best decision I made this year. Buy a 1yr subscription to @lynda @cybercaptive
guys lynda.com (@lynda) is the best. So far I’ve learned Java, principles of OO programming, and now learning about MS project @lucasmitchell
Signed back up to @lynda dot com. I’ve missed it!! Proper geeking out right now! #timetolearn #geek @JayGodbold
Share a link to this course

What are exercise files?

Exercise files are the same files the author uses in the course. Save time by downloading the author's files instead of setting up your own files, and learn by following along with the instructor.

Can I take this course without the exercise files?

Yes! If you decide you would like the exercise files later, you can upgrade to a premium account any time.

Become a member Download sample files See plans and pricing

Please wait... please wait ...
Upgrade to get access to exercise files.

Exercise files video

How to use exercise files.

Learn by watching, listening, and doing, Exercise files are the same files the author uses in the course, so you can download them and follow along Premium memberships include access to all exercise files in the library.


Exercise files

Exercise files video

How to use exercise files.

For additional information on downloading and using exercise files, watch our instructional video or read the instructions in the FAQ.

This course includes free exercise files, so you can practice while you watch the course. To access all the exercise files in our library, become a Premium Member.

Join now "Already a member? Log in

Are you sure you want to mark all the videos in this course as unwatched?

This will not affect your course history, your reports, or your certificates of completion for this course.


Mark all as unwatched Cancel

Congratulations

You have completed Excel 2007: Financial Analysis.

Return to your organization's learning portal to continue training, or close this page.


OK
Become a member to add this course to a playlist

Join today and get unlimited access to the entire library of video courses—and create as many playlists as you like.

Get started

Already a member?

Become a member to like this course.

Join today and get unlimited access to the entire library of video courses.

Get started

Already a member?

Exercise files

Learn by watching, listening, and doing! Exercise files are the same files the author uses in the course, so you can download them and follow along. Exercise files are available with all Premium memberships. Learn more

Get started

Already a Premium member?

Exercise files video

How to use exercise files.

Ask a question

Thanks for contacting us.
You’ll hear from our Customer Service team within 24 hours.

Please enter the text shown below:

The classic layout automatically defaults to the latest Flash Player.

To choose a different player, hold the cursor over your name at the top right of any lynda.com page and choose Site preferencesfrom the dropdown menu.

Continue to classic layout Stay on new layout
Exercise files

Access exercise files from a button right under the course name.

Mark videos as unwatched

Remove icons showing you already watched videos if you want to start over.

Control your viewing experience

Make the video wide, narrow, full-screen, or pop the player out of the page into its own window.

Interactive transcripts

Click on text in the transcript to jump to that spot in the video. As the video plays, the relevant spot in the transcript will be highlighted.

Are you sure you want to delete this note?

No

Your file was successfully uploaded.

Thanks for signing up.

We’ll send you a confirmation email shortly.


Sign up and receive emails about lynda.com and our online training library:

Here’s our privacy policy with more details about how we handle your information.

Keep up with news, tips, and latest courses with emails from lynda.com.

Sign up and receive emails about lynda.com and our online training library:

Here’s our privacy policy with more details about how we handle your information.

   
submit Lightbox submit clicked
Terms and conditions of use

We've updated our terms and conditions (now called terms of service).Go
Review and accept our updated terms of service.