Effective Tax Rate (Historical) Formula in Excel

Looking to quickly retrieve a company's effective tax rate for a specific year or quarter in your Excel spreadsheet? With the MarketXLS integration, the Effective Tax Rate (Historical) formula lets you seamlessly access historical metrics, including trailing twelve months (TTM). This function is especially useful for financial analysts, accountants, and investors who need accurate, up-to-date rates for their fundamental research.

Understanding Effective Tax Rate (Historical)

The Effective Tax Rate (Historical) formula is designed to:

• Provide a company’s historical effective tax rate for the selected financial period.
• Help you evaluate a company’s tax efficiency and profitability trends over time.
• Streamline tax analysis for your portfolio or investment decisions directly within Excel.

Key benefits include:

• Direct Excel integration for quick data retrieval.
• Flexible inputs for year, quarter, and trailing twelve months.
• Automatic error-checking to return “NA” when invalid inputs or missing data are encountered.

Syntax and Parameters

Use the following syntax to call the formula in Excel:

=hf_Effective_Tax_Rate(Symbol, Year, [Quarter], [TTM])

?? Note: A valid MarketXLS subscription is required for real-time or fundamental data retrieval. If your plan doesn’t support historical fundamentals, you may receive a “Not supported on your plan, please upgrade.” or “NA” error.

Return Value

The formula returns the effective tax rate for the specified period. If data is not found or parameters are invalid, it returns the text “NA”.

Error Handling and Special Cases

• If the Symbol is not recognized or the subscription is not valid, the function returns “NA”.
• For trailing twelve months (TTM) calculations, your query may combine data from multiple quarters.
• Use appropriate date formats when referencing cells or specifying “LY”, “LQ”, or “TTM” periods.

Examples and Usage

Below are some practical examples showing how to get immediate results:

1. Retrieve the effective tax rate for Microsoft (MSFT) for the year 2022:

   =hf_Effective_Tax_Rate("MSFT", "2022")

2. Retrieve the rate for the second calendar quarter of 2022:

   =hf_Effective_Tax_Rate("MSFT", "2022", 2)

3. Get trailing twelve months from the third quarter of 2022:

   =hf_Effective_Tax_Rate("MSFT", "2022", 3, "TTM")

4. Retrieve the last quarter’s data automatically:

   =hf_Effective_Tax_Rate("MSFT", "LQ")

5. Retrieve data for a past quarter, such as “last quarter minus one”:

   =hf_Effective_Tax_Rate("MSFT", "LQ-1")

? Pro Tip: To automate year or quarter entries, reference a cell or use functions like:
=hf_Effective_Tax_Rate("MSFT", TEXT(A1,"yyyy"), 2)

Common Questions

1. Why am I getting “NA”?

   • This may occur if the symbol is invalid, the data for that period is not available, or your subscription plan does not support historical fundamentals.

2. Can I use this function for indices or options?

   • Yes. Just supply the correct symbol such as ^SPX for indices, or @MSFT 110122C00020000 for options.

3. What’s the performance impact?

   • Each request fetches data from the MarketXLS API, which is typically fast. However, frequent calls for large datasets can slow your spreadsheet. Consider caching or limiting refresh frequency for efficiency.

4. Do I need any special formatting for date inputs?

   • Use standard references for years and quarters. For advanced date references, use cell references or Excel’s built-in date functions.

With the Effective Tax Rate (Historical) formula in Excel, you can quickly run in-depth tax analysis and maintain accurate financial models without switching platforms.