Working with more than one timeline in a model is common. Modellers need to be able to take series data calculated in a high resolution timeline (e.g. quarterly) and aggregate it in a low resolution timeline (e.g. annual). In this modelling guide, we will explain how to aggregate quarterly series data in an annual model using SUMIF and SUMPRODUCT.

1. Financial Modelling
HANDBOOK.
TIMELINE
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CONVERSION
Flows: from Quarterly to Annual

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MODELLING HANDBOOK
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4. PURPOSE
Working with more than one timeline in a model is common.
Modellers need to be able to take series data calculated in a
high resolution timeline (e.g. quarterly) and aggregate it in a low
resolution timeline (e.g. annual).
In this modelling guide, we will explain how to aggregate
quarterly series data in an annual model using SUMIF and
SUMPRODUCT.
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ACCOMPANIES THIS TUTORIAL

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HANDBOOK.
BASICS FOR CONVERTING TIMELINES
1
Worksheets containing different timelines should have the same number of columns. This helps
to retain consistency when taking data from one timeline to another.
There are four basic points that should be considered before we begin:
The timeline header of the worksheet should be clear and specific as to the period represented
by each column. This is particularly important for secondary timelines (e.g. those timelines
whose main purpose is to aggregate core data modelled under a primary timeline).
In this guide, the quarterly timeline is assumed to be the primary timeline.
2
2

6. financialmodellinghandbook.comFinancial Modelling
HANDBOOK.
BASICS FOR CONVERTING TIMELINES
3
Where data presented on one timeline is exported to a worksheet that is has a different timeline,
it has been marked in italics. This provides a visual indication that the imported data is alien to
the underlying timeline of active worksheet.
The timeline on which data is being presented is in normal date format.4
3
4

7. financialmodellinghandbook.comFinancial Modelling
HANDBOOK.
INGREDIENTS AND APPLICATION
OF SUMIF FUNCTION
To present quarterly flows on an annual timeline using a SUMIF function, we have brought together the
following ingredients:
1) Financial year ending - quarterly
2) Flow - quarterly
3) Financial year ending – annual
SUMIF tests for where the quarterly financial year ending matches the annual financial year ending. The
quarterly data series is aggregated where the test is met.

8. USING SUMPRODUCT
An alternative to SUMIF is the SUMPRODUCT function.
SUMPRODUCT multiplies the corresponding components in the data ranges given and
adds up the result. Each data range must contain the same number of columns and
rows for a corresponding component to be identified.
SUMPRODUCT offers the modeller considerable flexibility – in particular by offering the
potential to build tests (or flags) into the formula.
However, formula length is frequently an issue and formulae quickly become complex
(and therefore difficult to review).
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9. financialmodellinghandbook.comFinancial Modelling
HANDBOOK.
INGREDIENTS REQUIRED IN
SUMPRODUCT FUNCTION
To present quarterly flows on an annual timeline using SUMPRODUCT, we need
the following ingredients:
1) Model period ending - quarterly
2) Flow - quarterly
3) Model period beginning – annual
4) Model period ending – annual

10. financialmodellinghandbook.comFinancial Modelling
HANDBOOK.
COMPONENTS AND APPLICATION
OF SUMPRODUCT
5
6
There are two conditions applied in this function, which are as follows:
The end date (model period ending) of the quarterly timeline is greater than or equal to the start
date of the annual timeline (model period beginning – annual).
The end date (model period ending) of the quarterly timeline is less than or equal to the end date
of the annual timeline (‘model period ending – annual’).
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6

11. financialmodellinghandbook.comFinancial Modelling
HANDBOOK.
COMPONENTS AND APPLICATION
OF SUMPRODUCT FUNCTION
The conditions in the formula are multiplied by 1 so as to turn ‘TRUE’ and ‘FALSE’ into a number (1 for
TRUE and 0 for FALSE). This represents a flag embedded in the SUMPRODUCT formula.
In each column, the formula returns the numbers from the ‘Flow – quarterly’ data series where the primary
(quarterly) timeline dates fall between (i) the secondary (annual) timeline dates beginning and (ii) the
secondary timeline dates ending.
To help assess how the formula works, enter the formula bar using F2. Highlight a discrete portion of the
formula - e.g. 1 * ($J17:$AD17 >= K19) – and press F9. This will reveal the results of that part of the
formula. Press escape (Esc) to return to the original formula.