Invested Capital Average (Historical)

Returns the historical average invested capital for a company. Using average invested capital helps normalize ROIC calculations.

Formula

Average Invested Capital = (Beginning Invested Capital + Ending Invested Capital) / 2

Parameters

Parameter Required Description
Symbol Yes Stock ticker symbol
Year Yes Fiscal year or period code
Quarter No Quarter 1-4
TTM No "TTM" for trailing twelve months

Examples

=hf_Invested_Capital_Average("AAPL", 2023, 4)
Q4 2023 avg invested capital
=hf_Invested_Capital_Average("MSFT", "ly")
Last year average
=hf_Invested_Capital_Average("GOOGL", 2023, , "TTM")
TTM average

When to Use

  • Proper ROIC calculations
  • Capital efficiency trending
  • Normalizing for capital changes
  • Multi-period analysis

When NOT to Use

Scenario Use Instead
Point-in-time capital hf_Invested_Capital()
ROIC directly hf_Retun_on_Invested_Capital()
Working capital hf_Working_Capital()

Common Issues & FAQ

Q: When should I use average vs point-in-time? A: Use average for ratio calculations (ROIC) to better match flow metrics with stock metrics.

Q: How is the average calculated? A: (Beginning period + Ending period) / 2.

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MarketXLS Excel Add-in Tutorial - How to Use Invested Capital Average (Historical) and Other Financial Formulas
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