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The tutorial demonstrates how to use the text function in Excel to convert number values to text and customize the formatting of the output. By using the text function, users can convert numbers to currency and specify the desired format. The video shows how to access the function through the insert function window and provides guidance on the various arguments that can be used, such as zero placeholders and pound signs for formatting. Microsoft's site offers explanations and examples of how the formatted text will appear based on the specified arguments.