Definition
“Drawing in Excel” isn’t a typical finance term. However, in the context of Microsoft Excel, a program often used in finance, “drawing” generally refers to the action of adding shapes, lines, boxes, arrows or other graphical elements to a spreadsheet. These can be used in financial context to highlight specific data, create diagrams, or visually present financial information.
Key Takeaways
- Drawing in Excel refers to one’s ability to add shapes, diagrams and flowcharts directly onto excel spreadsheets. It’s a tool that can contribute to effective data visualization and understanding.
- Excel offers a wide range of drawing and graphic tools including shapes, images, smart art, screenshots, text boxes, etc. Accessories like arrows, highlights or color adjustments can be added to these drawings to enhance data representation.
- Drawing features in Excel are extensively interactive and customizable. These drawings can be resized, reshaped, formatted, and aligned to suit the presentation needs of the data on the sheet.
Importance
Drawing in Excel is a significant financial term, due to the importance and utility it provides in creating comprehensive and visual financial reports, analyses, and presentations.
It includes creating shapes, diagrams, flow charts, and lines which can be utilized to illustrate financial data, trends, and patterns graphically.
This can be advantageous for making complex financial data more comprehensible and accessible to a broader audience, including stakeholders and decision-makers who might not have finance-specific knowledge or expertise.
Therefore, the ‘drawing’ feature in Excel is a crucial tool for leveraging the communication and understanding of financial information visually, assisting in effective decision-making processes.
Explanation
The term “Drawing in Excel” primarily refers to the utilization of the platform’s embedded drawing tools to create, personalize, or highlight specific elements in a spreadsheet. Drawing tools are essentially graphic aids that provide means to visually represent or communicate data and information within the Excel workspace.
The purpose of Drawing in Excel is manifold. As it provides a graphical representation, it helps to simplify and clarify complex data.
These drawings can be shapes, diagrams, flow charts, or even free-form designs that can be used to emphasize points, interconnections, or show patterns, trends, or anomalies in your data. Furthermore, these visual elements can directly contribute to a spreadsheet’s ease of readability, interpretability, and overall aesthetics, aiding in more effective communication and presentation of data insights or findings.
Examples of Drawing in Excel
Creating a Budget Spreadsheet: One common way Excel is used in finance is to create a budget spreadsheet. This can be for personal or business use. For example, an individual can use Excel to list all their income and expenses to control their spending. A business might use Excel to track revenue, costs, and profits for different products or departments. Different formulas can be used to calculate total earnings, total costs, and a final balance.
Preparing a Financial Report: Financial analysts often use Excel to prepare financial reports based on data collected over a period. This might include an income statement, a balance sheet, or a cash flow statement. Excel’s features (like pivot tables and charts) make it easier to understand and present data visually.
Building a Financial Model: Excel is commonly used in finance to build financial models. For example, an investment analyst might use Excel to create a model that predicts a company’s future earnings based on certain variables. This model can then be used to make investment decisions. These models may also include complex mathematical formulas and functions that calculate financial indicators and ratios.
Frequently Asked Questions about Drawing in Excel
1. How can I start drawing in Excel?
To begin drawing in Excel, go to the ‘Insert’ tab and in the ‘Illustrations’ group, click on ‘Shapes’. Choose the shape you want to draw, then click anywhere on your Excel sheet and drag to create the shape.
2. Can I draw free form shapes in Excel?
Yes, you can draw free form shapes in Excel. To do this, go to the ‘Insert’ tab, click ‘Shapes’, then choose the ‘Freeform’ option. You can then draw the shape directly on your Excel sheet.
3. How to resize a drawing object in Excel?
To resize a drawing object in Excel, click on the object to select it. You’ll see small circles appear around the object, called ‘sizing handles’. Click and drag on these handles to adjust the size of the object.
4. Can I group multiple drawing objects together in Excel?
Yes, you can group multiple drawing objects together in Excel. To do this, hold down the ‘Ctrl’ key on your keyboard and click each object you want to group. Then, right-click on one of the objects, and choose ‘Group’ > ‘Group’ in the context menu.
5. How to change the color of a drawing object in Excel?
To change the color of a drawing object in Excel, select the object, then go to the ‘Format’ tab. In the ‘Shape Styles’ group, click ‘Shape Fill’ and choose the color you want.
Related Entrepreneurship Terms
- Spreadsheet Formulas
- Data Analysis
- Chart creation
- Pivot Tables
- Financial Modeling
Sources for More Information
- Microsoft Office Help Center: They provide tutorials and assistance for all office applications including Excel. You can find plenty of topic-specific help on drawing or plotting in Excel.
- Excel Easy: This is a free online tutorial site that provides simple and comprehensive lessons on Excel, including lessons on drawing in Excel.
- Dummies: Dummies has produced numerous books and online guides about all Microsoft Office applications. They offer in-depth, step-by-step instructions on many topics, including how to draw in Excel.
- Udemy: Udemy is an online learning platform where you can find a number of courses related to drawing in Excel taught by industry professionals and experts.
