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

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

Research & Development (R&D) Expense As Percentage Of Revenue (Historical) helps you understand how much of a company's revenue is being spent on research and development activities over a specified period. By comparing R&D expenses to revenue, you can:

• Identify trends in innovation spending.
• Compare different companies’ focus on development.
• Make more informed investment and strategic decisions.

? Pro Tip: Use this formula to quickly identify whether a company is increasing or decreasing its R&D investment over time, which can be a key indicator of future product pipelines and competitive advantage.

Syntax and Parameters

Use the hf_RandD_Expense_as_Percentage_of_Revenue function to retrieve the historical R&D expense as a percentage of total revenue for a specified symbol and time period.

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

• Return Value:

• Returns a numeric value representing the R&D expense as a percentage of revenue.
• Returns "NA" if the symbol is invalid, data is unavailable, or the license is not valid.

• Error Handling:

• If no valid or active license is detected, the function returns "NA".
• Invalid symbols return "NA".

?? Note: Relative periods like "ly" (last year), "lq" (last quarter), and "lt" (last twelve months) provide quick access to historical data without needing specific year or quarter inputs.

Examples and Usage

1. Basic Example:

   =hf_RandD_Expense_as_Percentage_of_Revenue("MSFT", 2022)

   Retrieves the R&D expense as a percentage of revenue for Microsoft in 2022.

2. Quarter-Specific Data:

   =hf_RandD_Expense_as_Percentage_of_Revenue("MSFT", 2022, 2)

   Shows the percentage value for Q2 of 2022.

3. Trailing Twelve Months:

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

   Retrieves the trailing twelve months value, ending with Q3 of 2022.

4. Last Quarter or Last Year:

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

   Quickly fetches the most recent quarterly or yearly data without specifying the exact quarter or year.

5. Shifting Relative Periods (lq-1, ly-1, lt-1):

   =hf_RandD_Expense_as_Percentage_of_Revenue("MSFT", "lq-1")
   =hf_RandD_Expense_as_Percentage_of_Revenue("MSFT", "ly-1")
   =hf_RandD_Expense_as_Percentage_of_Revenue("MSFT", "lt-1")

   Retrieves data for the previous quarter/year/12-month period.

Date Input Variations

Though this function typically uses year and quarter, you can still reference cells or use date conversions in Excel if you store your year in a cell or transform dates:

• Cell reference for year:

  =hf_RandD_Expense_as_Percentage_of_Revenue("MSFT", A1)

• Using TEXT conversion for dynamic dates (e.g., in A1):

  =hf_RandD_Expense_as_Percentage_of_Revenue("MSFT", TEXT(A1,"yyyy"))

Common Questions

1. Why am I getting "NA"?

You might receive "NA" if:

• Your MarketXLS license is invalid or expired.
• The symbol you entered is incorrect.
• The data for the specified period is unavailable.

2. How do I compare multiple companies at once?

Simply reference different cells for each company’s symbol in separate formulas. For example:

=hf_RandD_Expense_as_Percentage_of_Revenue(A2, 2023)
=hf_RandD_Expense_as_Percentage_of_Revenue(A3, 2023)

Where A2 and A3 contain different tickers.

3. Are there performance considerations when using this formula frequently?

• Repeated calls across many cells can slow workbook performance if you are making many API requests simultaneously.
• Consider refreshing data in batches or using Excel’s calculation options to manage updates efficiently.

4. What if I want a consolidated view of R&D compared to other expenses?

You can combine this formula with related MarketXLS historical fundamental functions (e.g., Revenue, Gross Profit) in your spreadsheet to get a broader financial profile. Use cell references to calculate custom ratios or comparisons.

? Pro Tip: Try combining R&D as a percentage of revenue with other fundamental ratios to build a custom dashboard for a deeper insight into a company’s profitability and innovation trends.

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