Over usage of formula fields

Often, Salesforce configuration options are suggested as the first option or solution to any given problem. For example, the formula field. Formula fields are fast and easy ways to show calculated field values driven from the same or related objects (parents or grandparents). Formulas are easy to create and manage and are very handy when values are to be shown dynamically.

However, we should understand how a formula field really works under the hood. Formula fields are calculated fields (values are not physically stored), which are calculated every time a record is retrieved. The formula field value gets calculated only if it is a part of the retrieval process. This means that an additional calculation is to be performed for each object record that is retrieved. Now, this will not impact when you are merely looking at the record in view mode or are retrieving a limited number of records. But when you retrieve bulk records via code or reports, the use of more...