What advantage does using named ranges provide in Excel?

Using named ranges in Excel greatly enhances the clarity and manageability of formulas. When you assign a meaningful name to a cell or a range of cells, it becomes much easier to understand the context of your formulas. Instead of referencing a cell with its address, like A1 or B10, you can use a descriptive name that explains the data it contains. For instance, naming a range that contains sales figures as "SalesData" allows users to quickly grasp that the formula using this name pertains to sales data, simplifying the reading and interpretation of complex calculations.

This clarity helps both in creating the formulas and in future modifications or troubleshooting. When reviewing formulas, users can quickly ascertain the purpose of each element without needing to cross-reference numerical cell addresses. Thus, named ranges contribute to better documentation of the spreadsheet’s logic and intention, making teamwork and collaboration on shared spreadsheets much more efficient.