What do "cell references" indicate in Excel?

Cell references in Excel are critical for identifying the location of data within a worksheet. When you use a cell reference in a formula or function, it tells Excel where to retrieve or manipulate data. For example, using a cell reference like A1 points to the specific content of that cell, enabling calculations to be performed dynamically. This means if the value in A1 changes, any formula that references A1 will automatically update, reflecting the new value.

Understanding cell references is essential for creating effective spreadsheets, as they allow users to build complex calculations and data analyses without needing to manually change values each time. This dynamic linking is one of the fundamental features that sets Excel apart as a powerful tool for managing and analyzing data.