Excel Business Analysis · Chapter 2 of 10

Formulas and Functions

Use core Excel formulas correctly, with relative and absolute references, logic, and error handling.

Why this chapter matters

Reliable formulas are the base layer for every metric, forecast, and management decision built in Excel.

What you will learn

  • Choose relative, absolute, and mixed references for copy-safe formulas.
  • Use SUMIFS, COUNTIFS, IF, and nested logic for business rules.
  • Wrap formulas with clear error handling using IFERROR or equivalent checks.

Lessons in this chapter

  1. Reference behaviorControl what moves and what stays fixed when filling formulas.
  2. Conditional aggregationCalculate totals and counts by one or more criteria.
  3. Decision formulasModel policy logic with IF, AND, OR, and simple nesting. Read the full guide →
  4. Error-safe calculationsHandle missing values and divide-by-zero cases clearly.

Study task

Build a margin analysis table that calculates revenue, cost, and margin percent by region with error-safe formulas.

Chapter checkpoint

When copying a tax-rate formula across columns, when do you use an absolute reference?

Use an absolute reference when the tax-rate cell must stay fixed, such as $B$1, while other references can move.