WEBVTT
NOTE Copyright (c) GoSkills Ltd, 2013 - 2023
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I'm just going to go straight into MOD.
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Because I think it's easier to just explain in Excel, see what you think?
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MOD is a good old fashioned mathematical function.
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Some people think it has no place in financial modeling.
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They'd be wrong, it's very, very useful.
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MOD is basically the good old clock arithmetic you learned from school.
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Let's take an example,
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using the illustration in row 7 here, 3 divided by 4.
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Now, 3 divided by 4 is 0, 0.75, but I don't want to show it that way.
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I want to say it's not remainder 3.
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See what I'm saying?
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It's, what's the whole number and what's the remainder left over?
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Well, the whole number's easy to calculate.
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There's a good old Yorkshire function.
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Intit equals INT for integer and we just take that divided that and
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it just takes the whole number part.
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So it's zero, but what about the remainder?
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Well, I could too okay, the remainder's
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going to be equal to this divided by that,
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0.75, minus the integer.
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So you got 0.75, multiplied by this will do it.
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Isn't that easy to follow?
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We're not gonna do it that way, there's an easier way.
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The MOD function works out the remainder for you.
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It counts, it does the modules.
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So it goes =mod, and it's just simply the number and the divisor.
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Is that simpler?
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If I copy these both down, I see it,
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13 divided by 6, is 2 remainder 1.
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23 divided by 8 is 2 times 8 is 16, plus 7 is 23.
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This is what MOD does, is it gives you the remainder.
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So, if I have a count down here, we can see how it actually works in the model.
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I can just go, =mod of this counter comma, the modules.
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And it goes therefore, copying it across.
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1, 2, 0, 1, 2, 0, 1, 2, 0, because 1 divided by 3 is 0 remainder 1.
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2 divided by 3 is 0 remainder 2, 3 divided by 3 is 1 remainder 0, and so on.
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Now if I'm in the model, and
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I'm doing something quarterly, I'll have three months in that quarter.
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So, I'll have month, one month, two month, three of quarter one.
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Then month, one month, two month, three of quarter two and so on.
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Wouldn't it be better to have 123, 123.
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What I could do is I could go equals mod open brackets.
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Of this comma that.
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Plus if all of this mod of that by
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this happens to equal nau ght
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then I want it to be the modulus.
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And we just need to make sure everything that C15 is absolute.
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And if you're thinking that's a horrible formula, you'd be right, but it works.
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An easier way is to do the following.
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You do =mod of this, -1,
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comment the Modulus +1 outside of it.
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And believe it or not, that's the same thing, because what happens is,
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if 1-1 is 0, 0 divided by 3 is 0, plus 1 is 1.
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2 minus 1 is 1, 1 divided by 3 gives you a remainder 1, plus 1 is 2.
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But this one, when I get to 3,
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that one would give me module of 0 before, it's actually gonna be,
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3 minus 1 is 2, 2 divided by 3 is not remainder 2 plus 1 is 3.
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See how it works?
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If I change it to 4, I can have a data validation here that's 4.
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It's all working, 6 and so on.
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Let's say I have to pay tax quarterly.
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So, let's go back to Modulus 03.
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And I have to pay it in the second period of each quarter.
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Do you see how easy it is with flags to do this?
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You just say equals, this here equals that number.
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And then we copy that across, and wherever it's a one, that's where we pay our tax.
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Or we can do a dividend calculation or we can actually do a GST payment or
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another indirect tax or whatever it is in our model.
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These are things you have to do all the time and people build much
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more complex calculations, to do this where MOD would come to their rescue.
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Simple as that.
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MOD, not so well known, but a very, very useful function for financial modeling.
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