Inventory Valuation Method (Historical) Formula in Excel

Understanding Inventory Valuation Method (Historical)

The Inventory Valuation Method (Historical) formula in Excel with MarketXLS helps you identify how a company is valuing its inventory—such as FIFO, LIFO, or Weighted Average Cost (WAC). Tracking this method over different periods provides valuable insights into a company’s gross profit and cost of goods sold, enabling more accurate financial comparison and analysis.

• Purpose: Determine the historical inventory valuation method (e.g., FIFO, WAC, LIFO) reported by the company.
• Key Benefits:
  • Compare how companies manage and report inventory costs.
  • Uncover trends in profit margins tied to valuation methods.
  • Enhance fundamental analysis for investment decisions.
• When to Use:
  • Analyzing historical fundamentals for deeper due diligence.
  • Pairing with revenue, cost of revenue, and gross profit analysis.

? Pro Tip: Use this function to complement other financial metrics for a more holistic performance overview.

Syntax and Parameters

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

?? Note: If the function encounters invalid symbols, license issues, or data unavailability, it returns "NA".

Return Value

• Returns the reported inventory valuation method as text (e.g., FIFO, LIFO, WAC).
• In some cases, it may return a numeric value or code if reported in numeric form.
• If data is unavailable or an error occurs, it returns "NA".

Error Handling and Special Cases

• Invalid symbol or license: returns "NA" or a message prompt.
• Non-numeric/missing data: "NA".
• TTM calculations may take slightly longer as they retrieve multiple data points.

Examples and Usage

Below are practical examples showing how to input parameters:

1. Basic Symbol and Year:

   =hf_Inventory_Valuation_Method("MSFT", 2022)

   Retrieves the inventory valuation method for Microsoft in 2022.

2. Year and Quarter:

   =hf_Inventory_Valuation_Method("MSFT", 2022, 2)

   Returns the value for the second calendar quarter of 2022.

3. Year, Quarter, and TTM:

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

   Retrieves trailing twelve months data from Q3 of 2022.

4. Last Quarter (lq) and Previous Offsets:

   =hf_Inventory_Valuation_Method("MSFT", "lq")
   =hf_Inventory_Valuation_Method("MSFT", "lq-1")

   Looks up the last quarter data or the last quarter minus one.

5. Last Year (ly) and Previous Offsets:

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

   Fetches last year’s data or last year minus one.

6. Last 12 Months (lt) and Previous Offset:

   =hf_Inventory_Valuation_Method("MSFT", "lt")
   =hf_Inventory_Valuation_Method("MSFT", "lt-1")

   Retrieves data for the last 12 months (or an earlier 12-month period).

Using Date Inputs

Although this function primarily uses year-based parameters, you can still reference date cells or inputs for consistency:
• Cell reference (A1 containing "2022"):

=hf_Inventory_Valuation_Method("MSFT", A1)

• Direct date (converted to year string):

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

• Excel date functions:

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

? Pro Tip: Combine this function with other historical fundamentals (e.g., revenue, cost of revenue) to evaluate how inventory costing methods affect gross profits.

Common Questions

1. Why do I get "NA" when I know data should exist?

Data may not be available for that year or quarter, or there could be an issue with your current subscription plan. Double-check symbol validity and ensure your MarketXLS license is up to date.

2. Can I use this formula for indices, crypto, or options?

Yes! Simply pass the appropriate symbol format (e.g., "^SPX", "BTCUSD:DEFAULT", "@MSFT 110122C00020000") as the first parameter.

3. Can I perform batch queries without performance issues?

Fetching multiple years and quarters might take longer than a single request. To optimize performance:

1. Limit simultaneous calls for large datasets.
2. Use the results caching features in MarketXLS.

4. Do I need special permissions to access historical fundamental data?

This feature may require a specific MarketXLS license type. If you see a license error, please contact MarketXLS support to upgrade or update your license.

?? Note: Overusing TTM queries or multiple calls for large date ranges may impact performance. Consider caching or storing results for repeated use.

5. Are there related functions?

• Revenue (Historical): Returns the company’s total historical revenue.
• Cost Of Revenue (Historical): Shows the cost of revenue in a historical period.
• Gross Profit (Historical): Displays the gross profit for specified historical dates.
• R & D Expenses (Historical): Provides details on research and development spending.
• Selling General and Administrative Expense (Historical): Captures the SG&A expenses historically.

? Pro Tip: Combine multiple historical metrics for a more complete financial analysis and ratio calculations in Excel.