Interest As A Percentage Of Invested Capital (Historical) Formula in Excel

Understanding Interest As A Percentage Of Invested Capital (Historical)

The Interest As A Percentage Of Invested Capital (Historical) formula in Excel with MarketXLS helps you measure a company's efficiency in allocating capital to profitable investments. By analyzing the historical values of interest expenses relative to invested capital, you can:

• Track a company’s long-term financial performance.
• Compare efficiency trends across different time periods.
• Make more informed portfolio and investment decisions.

? Pro Tip: Use this function to gain deeper insights into how effectively a company manages its debt and invested capital over time.

Syntax and Parameters

Use the following syntax in Excel:

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

• Return Type:

• Returns a numeric value representing the historical percentage.
• Returns "NA" if the symbol is invalid, license is not valid, or data is unavailable.

• Error Handling:

• If the input parameters are invalid or the company’s data is not found, the function returns "NA".

• Special Cases and Limitations:

• Applicable to equities, indexes, options, and cryptocurrencies (e.g., "MSFT", "^SPX", "@MSFT 110122C00020000", "BTCUSD:DEFAULT").
• Requires a valid MarketXLS subscription.

• Performance Considerations:

• Calls external data. Performance depends on the stability of your internet connection and the speed of the MarketXLS API.

?? Note: Ensure you have a valid MarketXLS license that supports historical fundamental data.

Examples and Usage

Here are examples demonstrating different ways to reference dates and symbols:

1. By cell reference for date:

   =hf_Interest_as_a_Percentage_of_Invested_Capital(A1, A2)

   (where A1 could contain "MSFT" and A2 could contain "2022")

2. Direct date input:

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

3. Using Excel date functions:

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

4. Symbol formats:

   • Regular Stock Symbol:

     =hf_Interest_as_a_Percentage_of_Invested_Capital("MSFT", 2022)

   • Index:

     =hf_Interest_as_a_Percentage_of_Invested_Capital("^SPX", 2022)

   • Option:

     =hf_Interest_as_a_Percentage_of_Invested_Capital("@MSFT 110122C00020000", "ly")

   • Crypto:

     =hf_Interest_as_a_Percentage_of_Invested_Capital("BTCUSD:DEFAULT", "lq")

• Basic Usage Example:

=hf_Interest_as_a_Percentage_of_Invested_Capital("MSFT", 2022)

Returns the interest as a percentage of invested capital for Microsoft in the year 2022.

• Advanced Usage Example:

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

Returns the trailing twelve-month percentage for Microsoft from the third quarter of 2022.

• Special Code Examples:

• "lq" (last quarter):

  =hf_Interest_as_a_Percentage_of_Invested_Capital("MSFT", "lq")

• "ly" (last year):

  =hf_Interest_as_a_Percentage_of_Invested_Capital("MSFT", "ly")

• "lt" (last 12 months):

  =hf_Interest_as_a_Percentage_of_Invested_Capital("MSFT", "lt")

Common Questions

1. Why do I get "NA"?

   • You may have used an invalid symbol, lack the required MarketXLS license, or queried a period that has no data available.

2. Can I use this function for all symbols?

   • Yes, as long as MarketXLS provides historical fundamental data for them and you have a valid license.

3. What if I want data from multiple periods at once?

   • You can use multiple cells, each with a different function call referencing different years or quarters.

4. Does this function measure all interest costs?

   • This function specifically returns the interest as a percentage of invested capital, reflecting how interest costs relate to how a company is allocating its capital.

5. How often is the data updated?

   • Data updates may depend on MarketXLS’s service schedule. Generally, fundamental data is updated quarterly or annually based on company reports.

? Pro Tip: Combine this formula with other historical fundamental metrics—like revenue growth or cost of revenue—to get a more holistic view of a company’s operating performance over time.