Definition
The DATEVALUE Excel Function is a feature in Microsoft Excel that converts a date that is stored as text into a serial number recognized by Excel as a date. This function is very useful when the date is a part of a text string that you wish to separate. The resulting serial number can be used with other date functions in Excel to manipulate and analyze the dates.
Key Takeaways
- The DATEVALUE Excel Function is a built-in function in Excel that is used to convert a date that has been stored as text into a serial number that represents a date in Microsoft Excel.
- It can be particularly useful when dealing with data sets that have dates in text format, and you want to perform calculations or manipulate these dates in a manner that Excel can interpret.
- The function will only recognize dates if they are entered in a format that Excel understands, such as “MM/DD/YYYY” or “DD/MM/YYYY” format depending on your regional settings. If a date text can’t be recognized, the function will return a “#VALUE!” error.
Importance
The DATEVALUE Excel function is a critical tool for financial analysts and other professionals who regularly work with dates.
It converts a date that is stored as text into a serial number that Excel recognizes as a date, allowing analysts to perform calculations or manipulations based on these dates.
This is particularly important in finance, as many calculations rely on specific dates, such as determining the length of an investment period, calculating depreciation, or managing payment schedules.
Therefore, the DATEVALUE function ensures data consistency and accuracy in financial models, streamlining workflows and increasing efficiency.
Explanation
The DATEVALUE Excel Function is a useful tool for financial analysts, accountants, and anyone working with dates in their spreadsheets. Its primary purpose is to convert a date, which is stored as text, into a format that Excel can recognize as a date.
As such, DATEVALUE changes data type but not the data itself, thus allowing Excel to have an accurate representation of the data for its functionality. In its application, the DATEVALUE Excel Function is typically used when date data has been downloaded or imported and Excel does not recognize it as a date.
The function effectively changes date text into a numeric value which Excel can interpret and use for computations involving dates. It’s commonly used in financial projects such as bonds, leases or amortization schedules where exact dates are essential for accurate analysis.
Examples of DATEVALUE Excel Function
Financial Planning: A financial planner may have a client who deposits money into a savings account on certain dates and wants to track the growth of the investment over time. The DATEVALUE Excel Function can be used to convert the string of dates into a format that can be used for calculations, helping the financial planner monitor the investment progress more accurately.
Stock Market Trading: A day trader monitors the daily fluctuations in stock prices. Each trading day, the trader logs the date and price at which a certain stock was bought or sold. The DATEVALUE Excel Function is used to convert date strings into a numerical system that can be used to plot trends and make predictions about future stock prices.
Accounting: An accountant needs to keep track of due dates for multiple clients to ensure that all invoices are paid on time and tax filings are done within the required deadlines. The DATEVALUE Excel Function enables the accountant to manage deadlines by converting dates from text format into Excel date format. This allows the accountant to sort all due dates chronologically and effectively prioritize his tasks.
FAQs: DATEVALUE Excel Function
1. What is the DATEVALUE Excel Function?
The DATEVALUE Excel Function is used to convert a date that has been stored as a text to a serial number that Excel recognizes as a date. It essentially converts textual date representations into a sequential date value.
2. How do I use the DATEVALUE Excel Function?
To use this function, type “=DATEVALUE(” into an Excel cell, followed by the text date in inverted commas (e.g., “=DATEVALUE(“1-January-2000″)”). Press Enter and Excel should convert the text into a date serial number recognized by Excel.
3. What format should my date be in for the DATEVALUE function?
For the DATEVALUE function to give the correct output, the date text should be in a format that Excel can recognize, like “d-mmm-yy” or “mm/dd/yyyy”. However, the date format can vary based on your system settings.
4. Can I use the DATEVALUE Function on a range of cells?
Yes, you can use the DATEVALUE function on a range of cells. To use this function on a range of cells, you must use it as an array formula. An example of an array formula is =DATEVALUE(A1:A3), where A1:A3 are the cells containing dates in text format.
5. What do I do if the DATEVALUE Function returns a #VALUE! error?
If the DATEVALUE function returns a #VALUE! error, it could mean that the date text you’re trying to convert is not in a format that Excel can recognize. Ensure that your date text is in a valid format.
Related Entrepreneurship Terms
- Excel Functions: These are predefined formulas in Excel, with DATEVALUE being one of them.
- DATEVALUE Syntax: This is the specific formula used for the DATEVALUE Excel function, which is DATEVALUE(date_text).
- Date Text: This is an argument of DATEVALUE function and refers to the text that represents a date in an Excel date-time code.
- Serial Number: This is the outcome or result from using the DATEVALUE function in Excel. Excel represents dates as serial numbers, where 1 represents January 1, 1900.
- Error Values: When using the DATEVALUE function, users may encounter error values such as #VALUE! when the syntax is incorrect or the date text is not recognized.
Sources for More Information
- Microsoft Support – Microsoft’s official support page often provides detailed guides and explanations about all their functions, including the DATEVALUE function in Excel.
- ExcelFunctions.net – A great resource for Excel users that provides definitions and examples of various Excel functions.
- Corporate Finance Institute – A professional site that offers plenty of resources on finance-related topics, including Excel functions used in finance.
- ExcelTip.com – It offers various tips, tricks, and solutions to many Excel functions including the DATEVALUE function.
