Average Assets (Historical)
Returns historical average total assets for a company. This is typically calculated as the average of beginning and ending total assets for a period, and is commonly used in ratio calculations like ROA and asset turnover to smooth out period-end fluctuations.
Formula
Average Assets = (Beginning Total Assets + Ending Total Assets) / 2Supported Symbols
| Type | Format | Example |
|---|---|---|
| US Stocks | SYMBOL | AAPL, MSFT |
| ETFs | SYMBOL | SPY, QQQ |
| International | SYMBOL | SHOP, TSM |
Parameters
| Parameter | Description |
|---|---|
| Symbol | Stock ticker symbol |
| Year | Fiscal year (2020, 2021) or period code (lq, ly, lt) |
| Quarter | Optional: 1, 2, 3, or 4 for quarterly data |
| TTM | Optional: Set to "TTM" for trailing twelve months |
Why Use Average Assets
| Reason | Explanation |
|---|---|
| Smoothing | Reduces impact of one-time asset changes |
| Ratio Accuracy | Better represents assets used during period |
| Comparability | More consistent for trend analysis |
Notes
- Used in ROA and asset turnover calculations
- Provides better representation of assets employed during a period
- Particularly important when assets change significantly during the year
Examples
=hf_Average_Assets("AAPL", 2023)=hf_Average_Assets("MSFT", 2023, 2)=hf_Average_Assets("GOOGL", "ly")=hf_Average_Assets("AMZN", 2023, , "TTM")=hf_Average_Assets(A1, B1, C1)When to Use
- Calculating return on assets (ROA)
- Computing asset turnover ratios
- Financial ratio analysis requiring average values
- Smoothing asset base for performance measurement
- Period-over-period comparison with asset changes
When NOT to Use
| Scenario | Use Instead |
|---|---|
| Need period-end assets | hf_Total_Assets() |
| Need the ratio directly | hf_Asset_Turnover() |
| Need ROA directly | ReturnOnAssets() |
| Need specific asset types | hf_Current_Assets() or hf_NonCurrent_Assets() |
Common Issues & FAQ
Q: When should I use average vs end-of-period assets? A: Use average assets when calculating performance ratios (ROA, asset turnover) to better represent assets employed during the period. Use end-of-period for point-in-time analysis.
Q: Why is average different from year-end? A: If the company had significant asset changes (acquisitions, disposals) during the year, average will differ from year-end values.
Q: Why am I getting "NA"? A: Check that the symbol is valid and there is sufficient historical data to calculate the average.
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