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[Music] [Applause] [Music] hello welcome to another tutorial video this time were gonna go through a topic that weve received a lot of questions on which is circular references in Excel how they come up what they mean how to deal with them and how you actually use them in real life so I have over here a simplified income statement for a company we have their revenue their expenses we have left their interest income or expense blank for now because thats gonna be part of the demonstration now this company has raised a certain amount of debt and theyre also paying off that debt each year and this is important because paying off debt and paying interest expense on that debt those are some of the most common places where youll actually see these circular references crop up in Excel so thats the example were gonna be using before we go through that and before we go through the math what exactly is a circular reference I think the easiest way to explain it is that they come up when th
