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In this video tutorial, Excel date and time are commonly stored in the same cell, but it can be beneficial to split them into two separate cells using the round-down formula. The speaker, John, demonstrates how to achieve this by showing an example with random data including car make, model, date, and time of sale. By formatting the column without the time, the data is not actually stored as just a date, which can cause issues when trying to categorize or look up dates. John explains how to combine the date and time and turn them into two separate columns - one with the date and one with the time.