Research And Development Expense As Percentage Of Revenue (Historical) Formula in Excel

In this guide, you’ll learn how to use the “Research And Development Expense As Percentage Of Revenue (Historical)” formula in Excel with MarketXLS. This function helps you measure how much of a company’s revenue is allocated to Research and Development (R&D) over a specified historical period. Understanding this relationship can be crucial for assessing the company’s growth strategies and innovation efforts.

Understanding Research And Development Expense As Percentage Of Revenue (Historical)

• The purpose of this formula is to show the proportion of R&D expenses compared to the total revenue for a chosen time period.
• Key benefits include:
  • Evaluating a company’s emphasis on innovation.
  • Comparing R&D intensity across different companies or industries.
• Use this function when you need detailed historical context on a firm’s R&D budgeting relative to its revenue.

Syntax and Parameters

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

?? Note: If the symbol is incorrect or your plan doesn’t support the feature, the function will return "NA".

Return Value
• The function returns a numeric value indicating R&D expense as a percentage of total revenue for the specified period.
• Returns "NA" if data is unavailable, the symbol is invalid, or an error occurs during calculation.

Examples and Usage

Below are practical examples of how to use the formula within Excel. These examples assume you have MarketXLS installed and an active subscription that supports historical fundamental data.

1. Basic Usage

   =hf_Research_and_Development_Expense_as_Percentage_of_Revenue("MSFT", 2022)

   Retrieves Microsoft’s R&D Expense as a percentage of revenue for the year 2022.

2. Quarterly Data

   =hf_Research_and_Development_Expense_as_Percentage_of_Revenue("MSFT", 2022, 2)

   Retrieves data for the second quarter of 2022.

3. Trailing Twelve Months (TTM)

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

   Calculates the trailing 12 months value ending in the third quarter of 2022.

4. Last Quarter or Last Year Shortcut

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

   • “lq” retrieves the last quarter.
   • “ly” retrieves the last year.

? Pro Tip: Combine this function with other MarketXLS fundamental formulas like =hf_Revenue or =hf_RnD_Expense to gain deeper financial insights.

Date Inputs and Symbol Formats

Although this function primarily uses Year, Quarter, and TTM parameters, you can reference cells for dynamic input:
• Using a cell reference for year:

=hf_Research_and_Development_Expense_as_Percentage_of_Revenue(A1)

• Symbol formats include:

• Regular: "MSFT"
• Index: "^SPX"
• Option: "@MSFT 110122C00020000"
• Crypto: "BTCUSD:DEFAULT"

Common Questions

1. Why am I getting “NA”?

   • You may have entered an invalid symbol or used a feature not supported by your subscription. Confirm your MarketXLS plan covers historical fundamentals.

2. How can I improve performance when retrieving large volumes of data?

   • Limit the number of function calls in a single worksheet and consider using references for repeated values.

3. Can I use this formula for international stocks?

   • Yes, as long as MarketXLS provides data for that particular exchange or symbol.

4. How do I get the revenue value separately?

   • Use =hf_Revenue("Symbol", Year, Quarter, TTM) for historical revenue in the same format.

By leveraging the Research And Development Expense As Percentage Of Revenue (Historical) formula, you can monitor how effectively a company is allocating resources towards innovation relative to its revenue over time.