Normalized Return On Stock Equity (Historical) Formula in Excel

Gain deeper insights into a company's financial health with the Normalized Return On Stock Equity (Historical) formula in Excel. This function, available with MarketXLS, retrieves a company's adjusted Return On Equity (ROE) for a specified historical period, smoothing out the effects of nonrecurring items. Use this formula to make more informed, data-driven investment decisions.

Understanding Normalized Return On Stock Equity (Historical)

• Purpose and Use Cases
  The Normalized Return On Stock Equity (Historical) formula evaluates a firm's ROE after adjusting for one-time gains or losses. This is especially useful for:

  • Gaining a clearer picture of a firm's long-term profitability.
  • Comparing companies more accurately by reducing the impact of special items.
  • Making strategic investment decisions based on normalized fundamentals.

• Key Benefits

  • Simplifies complex adjustments, allowing for more accurate profitability comparisons.
  • Retrieves historical data directly within Excel, streamlining financial modeling.
  • Offers flexible period references, including quarters, years, trailing twelve months, or relative references.

• When to Use

  • Use this formula when you need to compare historical profitability across different time frames.
  • Ideal for fundamental analysis, especially when evaluating investment opportunities where one-time items may misrepresent performance.

Syntax and Parameters

=hf_Normalized_Return_on_Stock_Equity(symbol, year, [quarter], [TTM])

Return Value

• Returns a numeric value representing the company’s normalized ROE for the specified period.
• If data is not available or the symbol is invalid, the formula returns "NA".

Error Handling

• The function returns "NA" if the symbol is invalid or not recognized.
• If no data is found for the specified period (year, quarter, TTM), it also returns "NA".

Special Cases and Limitations

• Requires a valid license plan for full functionality (otherwise, "NA" may be returned).
• For best results, ensure the symbol corresponds to a company or instrument supported by MarketXLS.

Performance Considerations

• This function fetches data from an online database. A stable internet connection is recommended.
• Complex requests (e.g., multiple TTM calls) may take slightly longer due to data retrieval.

Examples and Usage

1. Basic Usage With Regular Symbol:

   =hf_Normalized_Return_on_Stock_Equity("MSFT", 2022)

   Retrieves MSFT’s Normalized ROE for the year 2022.

2. Including Quarter Parameter:

   =hf_Normalized_Return_on_Stock_Equity("MSFT", 2022, 2)

   Retrieves MSFT’s Normalized ROE for Q2 2022.

3. Using TTM (Trailing Twelve Months):

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

   Retrieves MSFT’s TTM Normalized ROE as of Q3 2022.

4. Relative Period References:

   • Last Quarter:

     =hf_Normalized_Return_on_Stock_Equity("MSFT", "lq")

   • Last Year Minus 1:

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

   • Last 12 Months:

     =hf_Normalized_Return_on_Stock_Equity("MSFT", "lt")

   These references let you quickly retrieve the most recent or shifted periods without specifying exact dates or years.

? Pro Tip: You can reference a cell for the year or quarter, e.g., =hf_Normalized_Return_on_Stock_Equity("MSFT", A1). This makes your worksheet more dynamic.

?? Note: If you see "NA" repeatedly, confirm the ticker symbol is correct and that your license plan supports the data accessed.

Common Questions

1. Why am I getting "NA" instead of a number?

Several reasons can cause this issue:

• Invalid or unsupported symbol.
• The specified historical period (year and quarter) might not have data.
• License plan limitations.
• No internet connection to fetch data.

2. Can I use direct date inputs or Excel functions for the year?

While this function primarily uses a numeric year or relative references, you can still manage your references dynamically in Excel. For instance, use:

=hf_Normalized_Return_on_Stock_Equity("MSFT", YEAR(A1))

Where A1 might contain a date.

3. Do I need a special subscription to get Normalized ROE data?

Yes, certain data points require specific subscription levels. Check your plan if you receive "Not supported on your plan, please upgrade."

4. What are related historical fundamental functions I can use?

• Revenue (Historical)
• Cost Of Revenue (Historical)
• Gross Profit (Historical)
• R & D Expenses (Historical)
• Selling General and Administrative Expense (Historical)

Using these related functions alongside Normalized Return On Stock Equity (Historical) can give you a comprehensive view of the company’s performance.

? Pro Tip: Combine multiple historical fundamental functions in Excel arrays to compare different financial metrics simultaneously.

By incorporating the Normalized Return On Stock Equity (Historical) formula into your Excel workflow, you can more reliably analyze a company’s performance across different time frames and remove the impact of one-time events. This added clarity can significantly sharpen your investment or financial planning strategies.