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

In Excel, the Retun On Invested Capital (ROIC - Historical) formula (implemented as the MarketXLS function hf_Payout_Ratio) helps you quickly measure how effectively a company invests its capital. By retrieving historical ROIC data for publicly listed symbols, you can make data-driven investment decisions.

Understanding Retun On Invested Capital (ROIC - Historical)

• Purpose and Use Cases
  Retun On Invested Capital (ROIC) highlights how efficiently a company turns its investments into profit. Analysts and investors often use ROIC to compare companies’ potential for long-term value creation.

• Key Benefits

  • Helps gauge the efficiency of capital allocation.
  • Aids in comparing performance across companies and sectors.
  • Can serve as an important component in fundamental analysis models.

• When to Use
  Use this formula when you need to:

  • Assess investment quality and management’s effectiveness.
  • Perform historical analysis of a company’s returns relative to capital spent.
  • Refine your valuation models or financial analysis.

Syntax and Parameters

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

? Pro Tip: The formula returns a numeric value or "NA" if the data is not available. Ensure you have an active MarketXLS Historical Fundamentals subscription for this data.

?? Note: If you do not have the required MarketXLS license/subscription for historical fundamentals, the function may return "NA" or a subscription-related message.

Examples and Usage

Below are various ways to use hf_Payout_Ratio to retrieve the historical Return On Invested Capital (ROIC) value. Simply enter these formulas into any cell in Excel:

1. Basic Usage by Year:

   =hf_Payout_Ratio("MSFT", 2022)

   Retrieves ROIC data for Microsoft (MSFT) for the year 2022.

2. Year and Quarter:

   =hf_Payout_Ratio("MSFT", 2022, 2)

   Retrieves data for the second quarter (Q2) of 2022.

3. Year, Quarter, and TTM:

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

   Retrieves trailing 12 months (TTM) data for Q3 of 2022.

4. Special Syntax for Last Quarter (lq) or Last Year (ly):

   =hf_Payout_Ratio("MSFT", "lq")     // Returns ROIC for the last quarter
   =hf_Payout_Ratio("MSFT", "ly")     // Returns ROIC for the last year
   =hf_Payout_Ratio("MSFT", "ly-1")   // Returns ROIC from a year before last year
   =hf_Payout_Ratio("MSFT", "lt")     // Returns ROIC for last 12 months
   =hf_Payout_Ratio("MSFT", "lt-1")   // Returns the previous last 12 months

5. Date Inputs (if your workflow involves date references):

   • Using a cell reference:

     =hf_Payout_Ratio(A1, "lq")

     Where cell A1 could contain a symbol like "MSFT" or a specific date.
   • Direct date:

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

   • Using Excel date functions:

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

? Pro Tip: Combine hf_Payout_Ratio with other MarketXLS functions (e.g., hf_Revenue, hf_CostOfRevenue) to build a comprehensive financial model in Excel.

Common Questions

1. What does this function return if my symbol or subscription is invalid?
   If the symbol is unrecognized or you lack a Historical Fundamentals license, the function returns "NA".

2. Does the function work with different security types?
   Yes. You can use it with regular symbols (e.g., "MSFT"), indices (e.g., "^SPX"), options (e.g., "@MSFT 110122C00020000"), and crypto (e.g., "BTCUSD:DEFAULT").

3. How does data retrieval affect performance?
   Data calls are generally quick. However, performance might vary based on internet speed and server load.

4. Any limitations on date ranges?
   Historical data availability may vary by symbol. If your date or year parameter stretches beyond available data, you will see "NA".

5. Are there any related calculations or references I should check out?

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

?? Note: Ensure your MarketXLS settings and Data Source subscriptions are correctly configured to retrieve accurate and up-to-date fundamental data.