Return equity indicator (Historical) Formula in Excel

Welcome to this comprehensive guide on using the “Return equity indicator (Historical)” formula in Excel with MarketXLS. This function helps you measure historical changes in return on equity, a key metric for evaluating a company’s financial performance and predicting its future growth potential. In this article, you will learn the syntax, parameters, best practices, and error-handling approaches for effective usage.

Understanding Return equity indicator (Historical)

• The Return equity indicator (Historical) tracks the changes in return on equity (ROE) for a particular symbol over a specified year, quarter, or trailing twelve months (TTM).
• Key benefits:
  • Provides a historical perspective on a company’s ROE.
  • Helps in comparing performance across different time periods.
  • Aids in making more informed investment decisions.
• When to use:
  Use this formula when you need to dig into a company’s historical equity performance, analyze trends, or compare metrics across quarters or years.

Syntax and Parameters

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

Return Value
• Returns a numeric value (ROE indicator) for the specified symbol and date range.
• Returns "NA" if the symbol is invalid or if the user license is not valid.

? Pro Tip: Combine the parameters (year, quarter, and TTM) to customize the exact period you need to analyze.

Examples and Usage

Below are a few real-world examples demonstrating how to use this formula effectively.

Basic Symbol Inputs

• Regular symbol:

=hf_Return_Equity_Indicator("MSFT", 2023)

• Index symbol:

=hf_Return_Equity_Indicator("^SPX", 2023)

• Option symbol:

=hf_Return_Equity_Indicator("@MSFT 110122C00020000", "ly-1")

• Cryptocurrency symbol:

=hf_Return_Equity_Indicator("BTCUSD:DEFAULT", 2022)

Working with Dates

1. Using a cell reference for the year:

   =hf_Return_Equity_Indicator(A1, A2)

   Where A1 contains the symbol and A2 contains a valid year or date string.
2. Directly quoting a date as year:

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

3. Converting an Excel date to string:

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

Advanced Scenarios

• Return for a specific quarter of a certain year:

=hf_Return_Equity_Indicator("MSFT", 2022, 2)

• Using TTM (trailing twelve months) for a specified quarter:

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

• Last quarter or last year shortcuts:

• Last quarter:

  =hf_Return_Equity_Indicator("MSFT", "lq")

• Last year minus one:

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

• Last 12 months minus one:

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

?? Note: If you specify invalid parameters (e.g., an invalid symbol or incorrect date format), the function returns "NA".

Common Questions

1. Why am I getting “NA” as the result?

   • Your symbol might be invalid.
   • Your subscription license may not cover this function.
   • There may be temporary connectivity issues with the data source.

2. Can I use this formula for non-stock instruments?

   • Yes, it works for indices, options, and crypto symbols as well.

3. Are there performance considerations?

   • Each function call fetches data from MarketXLS. For large spreadsheets with many calls, consider limiting frequent recalculations or using Excel’s manual calculation mode.

4. What if I need other historical metrics?

   • MarketXLS offers various historical fundamentals (e.g., revenue, cost of revenue, gross profit). Check related functions like:
     • Revenue (Historical)
     • Cost Of Revenue (Historical)
     • Gross Profit (Historical)
     • R & D Expenses (Historical)
     • Selling General and Administrative Expense (Historical)

5. How is the TTM calculation done?

   • The TTM parameter aggregates data from the last four quarters up to your specified quarter to show a 12-month trailing value.

Use the [Return equity indicator (Historical)] formula to analyze how a company’s return on equity has changed over time. Proper usage of parameters and understanding of date strings will ensure you gain the most accurate insights for your investment strategies.