Retun On Invested Capital (ROIC - Historical) Formula in Excel

Dive into how the "Retun On Invested Capital (ROIC - Historical)" formula in Excel (with MarketXLS) helps you evaluate how effectively a company invests its capital to generate returns. This function is especially valuable for analyzing profitability and comparing performance across different time frames and market conditions.

Understanding Retun On Invested Capital (ROIC - Historical)

• Purpose: The ROIC (Return on Invested Capital) metric indicates how well a company uses its invested capital to generate profit.
• Key Benefits:
  • Offers a clear view of a company’s operational efficiency.
  • Helps compare profitability across multiple companies or over different periods.
  • Simplifies historical trend analysis for investment decision-making.
• When to Use:
  • Evaluating a company’s historical profitability trend.
  • Comparing ROIC data among peers in the same industry.
  • Identifying periods of strong or weak capital returns.

Syntax and Parameters

Syntax

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

Return Value

• Typically returns a numeric value representing the ROIC for the specified period.
• Returns "NA" if the symbol is invalid, if data is unavailable, or if there is a licensing issue.

Error Handling and Special Cases

• If the function encounters incorrect parameters or a subscription/license issue, it returns "NA".
• Historical data subscription is required for this function to work properly.
• Special keywords like lq, ly, and lt (and variations like lq-1, ly-2, etc.) allow quick access to past quarters or years, or trailing 12-month periods.

?? Note: Ensure you have the proper historical fundamental data subscription in MarketXLS. Otherwise, this function will return "NA".

? Pro Tip: Repeated calls to historical data functions may affect performance. Use MarketXLS’s caching or Excel features (like storing results in cells) to optimize workbook speed.

Examples and Usage

Below are some straightforward and advanced examples to help illustrate usage:

1. Basic retrieval by symbol and specific year:

   =hf_Retun_on_Invested_Capital("MSFT", 2022)

   Retrieves the ROIC for Microsoft in the year 2022 (defaulting to quarter 1).

2. Specifying both year and quarter:

   =hf_Retun_on_Invested_Capital("MSFT", 2022, 2)

   Retrieves the ROIC for Microsoft in the second quarter of 2022.

3. Including TTM (trailing twelve months) data:

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

   Retrieves the ROIC for Microsoft in 2022’s third quarter on a trailing twelve-month basis.

4. Using special keywords for year/quarter references:

   • Last Quarter

     =hf_Retun_on_Invested_Capital("MSFT","lq")

   • Last Quarter Minus One

     =hf_Retun_on_Invested_Capital("MSFT","lq-1")

   • Last Year

     =hf_Retun_on_Invested_Capital("MSFT","ly")

   • Last Year Minus One

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

   • Last 12 Months

     =hf_Retun_on_Invested_Capital("MSFT","lt")

   • Previous Last 12 Months

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

5. Multiple symbol formats:

   • For index:

     =hf_Retun_on_Invested_Capital("^SPX", 2022)

   • For options:

     =hf_Retun_on_Invested_Capital("@MSFT 110122C00020000", "ly")

   • For crypto:

     =hf_Retun_on_Invested_Capital("BTCUSD:DEFAULT", "lq")

Passing Year as a Cell Reference or via Date Function

Even though this function takes a string for the year, you can still input a date using Excel references:

• Cell reference:

  =hf_Retun_on_Invested_Capital("MSFT", A1)

  (Assuming cell A1 contains a valid year or special keyword like "ly")
• Direct text date (using the year portion):

  =hf_Retun_on_Invested_Capital("MSFT", "2024")

• From an Excel date function:

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

Common Questions

1. Why am I getting "NA" as a result?

   • You may be using an invalid or unsupported symbol.
   • Your MarketXLS license or historical data subscription may not be active.
   • The data for the specified period might not be available.

2. Can I use this function for all markets and symbols?

   • Yes, as long as MarketXLS supports historical fundamentals for the chosen symbol. Check symbol validity if you encounter “NA” results.

3. How do I optimize performance if I use this formula multiple times?

   • Store intermediate results in helper cells to reduce repeated calls.
   • Use MarketXLS caching features to minimize data re-fetching.

4. What if I want ROIC data for the past 5 years?

   • You can iterate each year using separate cells or references.
   • Use formulas like =hf_Retun_on_Invested_Capital("MSFT", "ly-1") for the previous years.

5. Does MarketXLS handle the calculations or does Excel?

   • MarketXLS gathers and processes the data from its backend and returns the results directly in your Excel sheet.

? Pro Tip: Combine hf_Retun_on_Invested_Capital with other historical fundamentals (e.g., revenue growth, net income) to create a comprehensive financial analysis dashboard.

Use the Retun On Invested Capital (ROIC - Historical) formula in Excel to gain deeper insights into how well a company puts its capital to work and to make more informed investment decisions.