Leverage Ratio (Historical) Formula in Excel

Leverage ratio is an essential indicator in financial analysis, helping investors and analysts gauge a company's ability to meet its financial obligations. With MarketXLS, the Leverage Ratio (Historical) formula in Excel makes it quick and straightforward to retrieve historical leverage metrics such as the debt-to-equity ratio, equity multiplier, degree of financial leverage, or consumer leverage ratio.

Understanding Leverage Ratio (Historical)

Leverage Ratio (Historical) allows you to:

• Evaluate a company's debt structure over specific periods.
• Identify trends in financial risk by analyzing historical data.
• Compare leverage ratios across different time frames like quarters, years, or trailing twelve months (TTM).

You should use this function when you need to:

• Track a company's debt levels and short- and long-term risk exposure.
• Conduct trend analysis on leverage metrics for historical periods.
• Compare financial leverage among multiple equities, indices, options, or cryptocurrencies.

Syntax and Parameters

Below is the general syntax for using the Leverage Ratio (Historical) formula in Excel:

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

The function returns the leverage ratio value as a numeric output. If the function is unable to retrieve data or encounters an invalid symbol or date, it will return "NA".

?? Note: Depending on your subscription plan, some historical fundamentals data may not be available.

Examples and Usage

Below are some common usage scenarios. You can use cell references, direct dates, or Excel date functions for the year and quarter parameters.

1. Retrieve by specifying the year and default quarter:

   =hf_Leverage_Ratio("MSFT", 2022)

2. Specify year and quarter explicitly:

   =hf_Leverage_Ratio("MSFT", 2022, 2)

3. Retrieve TTM data for a specific quarter and year:

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

4. Use “last quarter” shortcuts (lq) and “last year” shortcuts (ly):

   =hf_Leverage_Ratio("MSFT", "lq")
   =hf_Leverage_Ratio("MSFT", "lq-1")
   =hf_Leverage_Ratio("MSFT", "ly")
   =hf_Leverage_Ratio("MSFT", "ly-1")

5. Use “last 12 months” shortcut (lt):

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

? Pro Tip: Combine this formula with other historical fundamental functions like Revenue (Historical), Gross Profit (Historical), etc., to gain deeper insights into a company’s financial health.

Special Date Handling

You can enter dates in multiple formats:

• Cell reference:

  =hf_Leverage_Ratio(A1)

• Direct date string:

  =hf_Leverage_Ratio("2024-03-15")

• Using an Excel date function:

  =hf_Leverage_Ratio(TEXT(A1,"yyyy-mm-dd"))

Common Questions

1. What does the function return if data is not available?

The function will return "NA" if it cannot locate the data or the symbol is invalid.

2. How do I ensure the data is up to date?

MarketXLS regularly updates historical data. However, data intervals vary by source. Make sure your MarketXLS connection is active, and refresh your Excel workbook to pull the latest data.

3. Is there a limit to how many symbols or calls I can make?

Subscription plans may have daily or monthly call limits. Check your MarketXLS account plan to confirm your usage limits.

4. How are TTM values calculated?

“Trailing Twelve Months” uses the sum of the latest 4 quarters (or up to the last 12 months) of available financial data for the specified symbol.

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

Yes, simply pass the symbol in the correct format (e.g., "@MSFT 110122C00020000", "^SPX", "BTCUSD:DEFAULT") to retrieve the relevant data, provided your plan supports it.

?? Note: Historical fundamentals for certain assets (e.g., crypto) may be limited compared to stocks.

Looking for more ways to analyze your investments? Check out related functions:

• Revenue (Historical): Returns the company’s total revenue for a specified period.
• Cost Of Revenue (Historical): Retrieves the company’s total cost of revenue.
• Gross Profit (Historical): Provides the company’s gross profit.
• R & D Expenses (Historical): Shows the company’s R&D expenses.
• Selling General and Administrative Expense (Historical): Delivers data on SG&A expenses.

By using these MarketXLS formulas together, you can assemble a robust and dynamic financial dashboard to make informed decisions quickly and accurately.