How does the max function work in Excel?

Excuse me, could you please elaborate on how the max function operates within the Excel software? I'm particularly interested in understanding the specific steps it takes to determine the highest value among a given set of numbers. Could you walk me through an example, perhaps showcasing how it would identify the maximum number within a range of cells or even from a list of values directly entered into the function? Additionally, I'd appreciate any insights you might have on its versatility and any limitations or considerations I should be aware of when utilizing the max function in my spreadsheets.