Inventory Turnover (Historical) Formula in Excel

In this guide, you'll discover how to use the Inventory Turnover (Historical) formula in Excel with MarketXLS. This function helps you analyze how efficiently a company manages its inventory over a specific time period, making it an invaluable tool for investors and analysts.

Understanding Inventory Turnover (Historical)

• Purpose: The Inventory Turnover (Historical) formula calculates how many times a company sells and replaces its inventory during a particular period.
• Key Benefits:
  • Evaluate the efficiency of inventory management.
  • Compare inventory turnover across multiple time periods or different companies.
  • Make data-driven decisions about stock levels and sales performance.
• When to Use:
  • To gauge a company's short-term liquidity by analyzing its ability to turn inventory into sales.
  • For year-over-year or quarter-over-quarter performance evaluations.

Syntax and Parameters

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

Use the table below for detailed parameter information:

?? Note: This function returns "NA" if the symbol is invalid, data is unavailable, or the user license is not valid.

Return Value

The Inventory Turnover (Historical) formula returns a numeric value representing the number of times a company sells its inventory over the specified period. If the data cannot be retrieved or is invalid, the function outputs "NA".

? Pro Tip: Combine this formula with other historical fundamentals (like Revenue (Historical)) for deeper insight into company performance.

Examples and Usage

Below are several examples demonstrating how to use hf_Inventory_Turnover in Excel with MarketXLS.

1. Basic Usage for a Specific Year

   =hf_Inventory_Turnover("MSFT", 2022)

   Retrieves the inventory turnover for Microsoft in the year 2022.

2. Including Quarter and TTM

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

   Returns the trailing twelve-month inventory turnover data for Microsoft, considering the third quarter of 2022 as the reference point.

3. Last Quarter or Last Year

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

   • "lq" fetches the last reported quarter’s inventory turnover.
   • "ly" fetches the last reported year’s inventory turnover.

4. Using Cell References for Year

   =hf_Inventory_Turnover("MSFT", A1)

   If cell A1 contains the year (e.g., 2022).

5. Various Date Input Methods

   • Direct dates (if your data setup requires a string date):

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

   • Excel date function:

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

?? Note: Quarter values and TTM inputs are optional. If you leave them blank, the formula defaults to full-year data.

Common Questions

1. What if I get “NA” as a result?

   • This may occur if your symbol is invalid, the data for that period is unavailable, or your license does not allow the use of this function.

2. How can I improve performance?

   • Minimize recalculations by referencing cells for repeated parameters. Also consider checking your MarketXLS settings for caching or reducing unnecessary refreshes.

3. Can I use this formula for non-U.S. stocks or crypto?

   • Yes. You can replace the Symbol parameter with any valid ticker (e.g., "BTCUSD:DEFAULT" for Bitcoin).

4. Does the formula work for partial fiscal years or custom periods?

   • Currently, it supports standard calendar-based quarters, full fiscal years, last quarter/year, and TTM. For more granular periods, consider other MarketXLS functions or consult the product documentation.

5. How does trailing twelve months (TTM) work here?

   • TTM calculates the sum or average (depending on the metric) of the most recent 12 months or four quarters of data.

Use Inventory Turnover (Historical) alongside other historical fundamentals, such as Revenue (Historical), Cost Of Revenue (Historical), Gross Profit (Historical), and more to get a complete picture of a company’s operational efficiency.