Normalized Return On Invested Capital (Historical) Formula in Excel

In this guide, you’ll learn how to use the Normalized Return On Invested Capital (Historical) formula in Excel with MarketXLS. This function helps you analyze a company’s return on invested capital (ROIC) adjusted for nonrecurring charges or gains, enabling more accurate comparisons and insights into long-term profitability.

Understanding Normalized Return On Invested Capital (Historical)

• Purpose: The Normalized ROIC (Return On Invested Capital) accounts for one-time items, offering a clearer picture of a company’s core operating performance.
• Key Benefits:
  • Offers an apples-to-apples view of a company’s performance over different periods.
  • Helps investors gauge long-term profitability, independent of unusual expenses or incomes.
• When to Use:
  • Comparing different companies’ operational efficiencies.
  • Evaluating investment opportunities by focusing on consistent and comparable ROIC data.

Syntax and Parameters

Use the following syntax in Excel:

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

Return Value:
• A numeric value representing adjusted ROIC if successful.
• Returns "NA" if the symbol is invalid, the license is invalid, or data is unavailable.

?? Note: This function requires a valid MarketXLS subscription that includes historical fundamentals. If your license does not cover historical data, the function will return "NA."

Examples and Usage

Below are practical examples demonstrating typical usage scenarios. You can reference cells for each argument, use direct text inputs, or Excel formulas:

• Basic US equity symbol:

  =hf_Normalized_Return_on_Invested_Capital("MSFT", 2022)

• Specifying a quarter and TTM:

  =hf_Normalized_Return_on_Invested_Capital("MSFT", 2022, 2, "TTM")

• Using shortcuts for last quarter and last year:

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

• Applying to an index or crypto:

  =hf_Normalized_Return_on_Invested_Capital("^SPX", "ly-1")
  =hf_Normalized_Return_on_Invested_Capital("BTCUSD:DEFAULT", "lt")

? Pro Tip: Combine Year shortcuts like "lq-1", "ly-1", or "lt-1" to go further back in time. This helps compare different time frames quickly.

Handling Date Inputs

Although dates are typically handled as years and quarters for this metric, you can store date references in cells and format them to fit the needed inputs if necessary. For different date approaches, consider:

1. Cell references:

   =hf_Normalized_Return_on_Invested_Capital(A1, B1)

2. Direct strings (if your workflow requires date-like strings):

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

3. Using Excel date functions:

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

Common Questions

1. What if I get "NA" as a result?

   • Check if your symbol is valid.
   • Ensure your MarketXLS license includes historical fundamentals.
   • Verify that the requested period and symbol data exist.

2. Can I use this for international symbols or other asset classes?

   • Yes. MarketXLS supports various symbols, including indices, options, and some global equities. The function returns "NA" if data is unavailable.

3. Does this function impact Excel performance?

   • Generally, requests happen quickly. However, large data calls or slow internet connections may affect performance. For best results, avoid recalculating too frequently and consider saving results to references in another cell.

4. How do I compare TTM vs. standard annual data?

   • Use the optional TTM parameter to calculate trailing twelve months data. Compare it to the standard annual data by switching between including or omitting "TTM".

5. Which other historical fundamentals can I use to complement Normalized ROIC?

   • MarketXLS provides various historical fundamental metrics, such as Revenue (Historical), Cost Of Revenue (Historical), Gross Profit (Historical), and more for a well-rounded analysis.

?? Note: Always revert to official financial statements if data discrepancy is critical. MarketXLS aims to provide accurate information but should be cross-checked if vital decisions are involved.