Return On Assets (ROA - Last 12 Months) Formula in Excel

Understanding Return On Assets (ROA - Last 12 Months)

Return On Assets (ROA) measures how efficiently a company uses its assets to generate net income. By comparing net income to total assets, this formula provides insights into operational efficiency and profitability.

• Purpose: Quickly assess how well a company uses its assets to produce income.
• Key Benefits:
  • Helps evaluate operational performance
  • Simple gauge of overall financial health
• When to Use:
  • Screening potential investments
  • Tracking performance trends over time
  • Comparing similar companies in the same industry

? Pro Tip: Use this formula alongside other key ratios (e.g., Market Capitalization, EPS) for a more comprehensive analysis of a company’s finances.

Syntax and Parameters

Syntax

=ReturnOnAssets(Symbol)

Parameters

?? Note: If an invalid Symbol is provided, the function returns "NA". Also, a valid MarketXLS license and internet connection are required.

Return Value:
The function returns the ROA (Return on Assets) value for the specified symbol based on the past 12 months’ data. Typically, it is a numeric value or text indicating “NA” if data is unavailable.

Error Handling:

• If the symbol is invalid, the function returns "NA".
• If the license is invalid, the function returns a corresponding message.
• Network or data source errors also result in "NA".

Performance Considerations:
Return On Assets (ROA) calculation is generally fast. For large batches of symbols, consider batching requests or leveraging Excel’s calculation settings to optimize performance.

Examples and Usage

Below are a few ways to use the ReturnOnAssets function with MarketXLS:

1. Basic Usage with a Regular Symbol

   =ReturnOnAssets("MSFT")

2. Using an Index Symbol

   =ReturnOnAssets("^SPX")

3. Using an Option Symbol

   =ReturnOnAssets("@MSFT 110122C00020000")

4. Using a Cryptocurrency Pair

   =ReturnOnAssets("BTCUSD:DEFAULT")

? Pro Tip: Combine ReturnOnAssets with other MarketXLS key ratios (like EPS, Market Capitalization) to build powerful screening models in Excel.

Common Questions

1. What does a high ROA indicate?
   A higher ROA means the company is generating more profit per dollar of assets, indicating efficient use of its asset base.

2. Why does the formula return “NA”?

   • Invalid ticker symbols
   • Missing or incomplete data in MarketXLS data sources
   • Licensing or internet connectivity issues

3. How often is ROA data updated?
   MarketXLS typically updates fundamental data regularly. However, the exact frequency may vary based on the data provider.

4. Can I use this formula in bulk for multiple symbols?
   Yes, simply drag the formula down or across multiple cells referencing different symbols. Keep in mind overall calculation time when dealing with large data sets.

?? Note: Always verify data recency, as fundamental updates can lag behind real-time market changes.