Steps In Using Excel To Generate A
Sensitivity Report
1) Under “Tools” select “Scenarios”.
(If “Scenarios” is not available under “Tools” see instructions for adding
the Scenario Manager.)
2) Click on the “Add” button to create
a new scenario.
3) Add Scenario Dialog Box:
a) Step 1: Name the scenario and type
the name into the first window. The name is simply used to distinguish
one scenario from another. For example, one scenario might be named “worst
case” while another scenario is named “best case”.
b) Step 2: Identify the cells in the
spread sheet that will change in the particular scenario. Enter the cell
address of all cells that will change in the second window labeled “changing
cells”. Click “OK”
4) Scenario Values Dialog Box:
a) Step 1: Each of the cells identified
above as cells that will change will have a dialog window next to the cell
address. Enter the new value for each cell. When values are entered for
all changing cells, click “OK”.
5) You should now be back at the “Scenario
Manager” dialog box. Click on “Show” and the values in the spreadsheet
will be re-calculated according to the parameters of the scenario.
6) When you have created multiple scenarios
it is often useful to create a summary table of all of the scenarios. To
create a summary table do the following:
a) Step 1: Click “Summary” from the
“Scenario Manager” dialog box.
b) Step 2: Select the type of report
you want. For most users, the “scenario summary” will be easier to use.
c) Step 3: Identify the results cell.
This is the cell that has the ultimate value of interest within your spreadsheet.
For example, this cell might be net income.
d) Step 4: Click “OK”
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