The power of a spreadsheet application is demonstrated most clearly by formulas.
Formulas can be simple, like dividing the values in two cells, or they can be very complex.
The scope of this tutorial will focus on a more simple example of working with formulas. This tells Excel to handle the contents as a formula instead of a label or simple text. Cell E2 displayed the results of the formula or 1.724137931. In our illustration above, to determine Total Assets Turnover for each year, we would continue entering formulas in each cell in column E referencing the cells for Sales divided by Total Assets for each year. As stated, when a cell contains a formula, the value produced by that formula is displayed, as in cell E2 in the illustration above.