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In this tutorial, John demonstrates how to split date and time stored in the same Excel cell into two separate cells using the ROUND DOWN formula. He highlights a dataset featuring car sales, where the date and time of sale are combined, but only the date is needed. Simply formatting the column to display the date without time does not change how the data is stored and can lead to issues with categorization and lookups. Instead, John shows how to extract the date and time into individual columns, ensuring the data can be managed effectively for analysis and reporting.