Gross Margin (Historical) Formula in Excel

Understanding Gross Margin (Historical)

Gross margin measures the percentage of profit a company retains after deducting the direct costs of production (such as materials and labor) from its revenue. By using the Gross Margin (Historical) formula in Excel with MarketXLS, you can:

• Track year-over-year or quarter-over-quarter gross margins
• Compare profitability performance across multiple periods
• Make informed investment decisions by examining historical trends

This function is particularly useful for fundamental analysts, investors, and financial professionals who need accurate historical data without manually searching through financial statements.

Syntax and Parameters

Use the following syntax for the Gross Margin (Historical) formula:

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

Return Value:
• Returns a numeric value representing the gross margin as a fraction or percentage of revenue.
• Returns "NA" if data is unavailable or the symbol/year is invalid.

Error Handling:
• The formula returns "NA" if an invalid symbol is provided or if the data is not found.
• Check your MarketXLS license if certain historical data calls return a subscription-related message.

Performance Considerations:
• Each call fetches data from MarketXLS servers. Large numbers of requests or complex calculations may take longer.
• Ensure stable internet connectivity to prevent partial or failed data retrieval.

Examples and Usage

Below are some practical ways to use the hf_Gross_Margin function.

1. Retrieve Gross Margin for a Specific Year:

   =hf_Gross_Margin("MSFT", 2022)

   This returns Microsoft’s gross margin for the full year 2022.

2. Retrieve Gross Margin for a Specific Quarter:

   =hf_Gross_Margin("MSFT", 2022, 2)

   This returns Microsoft’s gross margin for Q2 of 2022.

3. Use Trailing Twelve Months (TTM):

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

   This calculates Microsoft’s gross margin for the trailing twelve months as of Q3 2022.

4. Retrieve Last Quarter or Last Year’s Data:

   =hf_Gross_Margin("MSFT", "lq")
   =hf_Gross_Margin("MSFT", "ly")

   Use “lq-1”, “ly-1”, etc., for prior periods.

? Pro Tip: You can combine cell references or Excel date functions to dynamically build the year or quarter parameters.
?? Note: Ensure you have the appropriate MarketXLS historical data subscription to retrieve the requested information.

Date Inputs in Different Formats

Although this function typically uses year and quarter values, you can still reference dates in a cell (e.g., a cell containing “2024-03-15”) if you combine Excel functions:

• Cell reference:

  =hf_Gross_Margin("MSFT", TEXT(A1,"yyyy"))

• Direct date (less common for this function but possible if you parse the year):

  =hf_Gross_Margin("MSFT", TEXT("2024-03-15","yyyy"))

• Using an Excel date function:

  =hf_Gross_Margin("MSFT", TEXT(TODAY(),"yyyy"))

Common Questions

1. What if the function returns “NA”?

   • Either the symbol is invalid, the year data is not found, or your data plan does not support this fundamental call.

2. How to handle conversion to a percentage format?

   • Format the cell in Excel as a percentage to view the result multiplied by 100%.

3. Can I use this for comparing multiple companies at once?

   • Yes. Insert multiple formulas referencing different Symbol values to compare gross margins side by side.

4. Does the function automatically update?

   • MarketXLS formulas typically refresh when you open the spreadsheet or when triggers (like calculation or data refresh) occur.

5. Are there licensing restrictions?

   • Certain historical fundamentals may require specific MarketXLS subscription levels. You may see a subscription-related message otherwise.

?? Note: For advanced fundamental analysis, also consider related functions like Revenue (Historical), Cost Of Revenue (Historical), or R & D Expenses (Historical) to get a complete picture of a company’s financial performance.