Financial Leverage (Historical) Formula in Excel

Financial Leverage (Historical) is designed to help you evaluate how borrowing (leverage) may amplify potential returns. With MarketXLS, you can seamlessly integrate this formula into your Excel worksheets to retrieve historical fundamental data for specific periods, quarters, or trailing twelve months (TTM). In this guide, we’ll explore key usage scenarios, syntax, parameters, and best practices.

Understanding Financial Leverage (Historical)

Financial Leverage (Historical) indicates how much an investment’s returns (or losses) might be magnified through the usage of borrowed capital.

• Helps assess the company’s ability to use debt effectively.
• Useful for comparing leverage across different time periods (yearly, quarterly, or TTM).
• Ideal for in-depth fundamental analyses and portfolio decision-making.

? Pro Tip: Combine the Financial Leverage (Historical) formula with other historical fundamental metrics to get a clearer picture of a company’s long-term financial health.

Syntax and Parameters

Use the following syntax to call the formula in Excel:

=hf_Financial_Leverage(Symbol, year, [quarter], [TTM])

Return Value

• Returns a numeric value representing the financial leverage for the specified period.
• If the symbol is invalid or data is unavailable, it returns "NA".

?? Note: A valid historical fundamentals subscription with MarketXLS may be required for this function to work correctly.

Examples and Usage

Below are practical examples illustrating how to use this formula:

1. By referencing a cell containing the year:

   =hf_Financial_Leverage(A1, 2022)

   (Here A1 could contain the symbol, e.g., "MSFT".)

2. Using direct symbol strings and specific years:

   =hf_Financial_Leverage("MSFT", "2022")

3. Retrieving data for an index:

   =hf_Financial_Leverage("^SPX", "2023")

4. Using quarter and TTM:

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

5. Relative periods (Last Quarter, Last Year, etc.):

   • Last quarter:

     =hf_Financial_Leverage("MSFT","lq")

   • Last year minus one:

     =hf_Financial_Leverage("MSFT","ly-1")

   • Last 12 months:

     =hf_Financial_Leverage("MSFT","lt")

Using Dates Directly

Although this formula typically uses years and quarters, you can reference dates in several ways:

• Cell Reference:

  =hf_Financial_Leverage(A1, YEAR(B1))

  (Where B1 contains a date, e.g., 3/15/2024.)
• Direct Date:

  =hf_Financial_Leverage("MSFT", "2024-03-15")

  (Internally interpreted by Excel as a string for the year parameter.)
• Excel Date Functions:

  =hf_Financial_Leverage("MSFT", TEXT(A1,"yyyy-mm-dd"))

  (Where A1 is a cell containing an Excel date.)

? Pro Tip: If you plan to compare multiple periods or symbols, place parameters in separate cells and reference them in your formula to streamline updates and comparisons.

Common Questions

1. Why am I getting "NA"?

• The symbol might be invalid or typoed.
• Data might not be available for the requested period.
• Ensure your MarketXLS subscription includes historical fundamentals.

2. Does calling this formula multiple times affect performance?

• Yes, if you have numerous cells calling the function simultaneously, it can slow down your workbook. Consider refreshing data in batches.

3. Can I use this formula for options or crypto?

• Absolutely. Pass the options symbol or crypto symbol in the Symbol parameter, for example, "@MSFT 110122C00020000" or "BTCUSD:DEFAULT".

4. What other historical fundamental formulas are helpful?

• Revenue (Historical): Analyzes the company’s revenue trends.
• Cost Of Revenue (Historical): Evaluates direct costs of producing goods/services.
• Gross Profit (Historical): Checks the profit after cost of revenue.
• R & D Expenses (Historical): Reviews research and development spending.
• Selling General and Administrative Expense (Historical): Tracks overhead and sales costs.

?? Note: Always verify period references (quarter or year) align with your data needs to ensure accurate results.