Invoice Turnover Formula in Excel

The Invoice Turnover formula in Excel with MarketXLS is a powerful function that helps you monitor how efficiently a company handles its invoices relative to its accounts payable. By incorporating key financial data directly in your spreadsheet, you can make more informed decisions, perform quick ratio analyses, and enhance your financial modeling.

Understanding Invoice Turnover

• Purpose and Use Cases
  Invoice Turnover measures the ratio of a company’s total sales to its average accounts payable. This indicator is vital when evaluating how quickly a company converts its invoices into cash.

• Key Benefits

  • Streamlines financial analysis within Excel.
  • Simplifies evaluating the financial health of a company.
  • Helps compare the efficiency of invoice management across multiple companies.

• When to Use

  • In credit risk and liquidity analysis.
  • For benchmarking a company’s performance against industry standards.
  • When assessing the impact of payables on a company’s cash flow.

Syntax and Parameters

Use the following syntax to call the InvoiceTurnover function in Excel:

=InvoiceTurnover(Symbol)

• Return Value
  The function returns the invoice turnover ratio. If the provided Symbol is invalid or there is a data retrieval issue, it returns "NA".

• Error Handling

  • "NA" if the symbol is not recognized.
  • "NA" if there is an issue with your MarketXLS license validation or internet connectivity.

• Special Cases & Limitations

  • Ensure that the symbol is valid and supported by MarketXLS.
  • Data might be delayed or missing for certain lesser-known or newly-listed securities.

• Performance Considerations

  • Multiple concurrent calls to MarketXLS may slow down Excel performance.
  • Use efficient formulas or batch your calculations to minimize recalculation time.

Examples and Usage

Below are practical ways to incorporate the InvoiceTurnover formula into your worksheets:

Basic Example

=InvoiceTurnover("MSFT")

In this example, the formula retrieves and calculates the invoice turnover ratio for Microsoft (MSFT).

Using a Cell Reference

=InvoiceTurnover(A2)

If cell A2 contains the symbol “MSFT”, the formula uses that reference to compute the result.

Indices, Options, and Crypto

You can also use the function for indices, options, and cryptocurrency symbols:

=InvoiceTurnover("^SPX")
=InvoiceTurnover("@MSFT 110122C00020000")
=InvoiceTurnover("BTCUSD:DEFAULT")

? Pro Tip: For multiple calculations, type the formula in one cell and drag it down or across the worksheet to apply it to different symbols quickly.

Common Questions

1. What if the function returns "NA"?

   • Check if your symbol is valid. Also, verify your internet connection and MarketXLS license.

2. Can I compare Invoice Turnover across different securities?

   • Yes. Simply enter different symbols across multiple cells, and then use the formula to compare results.

3. Does Invoice Turnover work with dates?

   • This function only requires a valid ticker symbol. Date formatting is not applicable here.

4. How do I speed up recalculations?

   • Limit the number of real-time formulas in your spreadsheet. Consider using a dedicated calculation sheet or grouping your symbols in a single range.

?? Note: Always confirm the accuracy of fundamental data from MarketXLS. Data reliability may vary depending on the source and symbol availability.