Return On Capital (Last 12 Months) Formula in Excel

If you want to measure a company’s efficiency in generating returns on its capital, the Return On Capital (Last 12 Months) formula in Excel with MarketXLS is an essential function. By analyzing net income and total capital over the past 12 months, you gain a clear snapshot of operational effectiveness and profitability.

Understanding Return On Capital (Last 12 Months)

The Return On Capital (Last 12 Months) formula helps you:

• Assess how effectively a business converts its capital into profits.
• Compare performance across different companies or industries.
• Identify trends in capital efficiency over time.

Use this formula when analyzing prospective investments, reviewing financial performance, or benchmarking industry peers.

Syntax and Parameters

Below is the basic syntax for using the ReturnOnCapitalLTM function:

=ReturnOnCapitalLTM(Symbol)

Return Value:
• Returns a numeric value representing the company’s net income for the last 12 months divided by its total capital.
• Returns "NA" if the symbol is invalid or if the data cannot be retrieved.

?? Note: This function fetches fundamental data from MarketXLS servers. Ensure you have a valid license, and be aware that an invalid or unsupported symbol will yield "NA".

Examples and Usage

Below are a few common ways to use ReturnOnCapitalLTM:

1. Basic usage with a stock symbol:

   =ReturnOnCapitalLTM("MSFT")

   This returns Microsoft’s Return on Capital for the last 12 months.

2. Using an index symbol:

   =ReturnOnCapitalLTM("^SPX")

   Retrieves Return on Capital for the S&P 500 index (if available).

3. For option symbols:

   =ReturnOnCapitalLTM("@MSFT 110122C00020000")

   Checks the associated underlying data for the specific contract.

4. For crypto symbols:

   =ReturnOnCapitalLTM("BTCUSD:DEFAULT")

   Retrieves Return on Capital data (if available) for Bitcoin in USD.

? Pro Tip: Always confirm your symbols are correct. MarketXLS supports a wide range of instruments, but invalid symbols will show "NA".

Special Cases and Limitations

• The function will return "NA" if the requested symbol or data is unavailable.
• Data accuracy may vary depending on MarketXLS’s data providers.
• Performance impact is minimal, but repeated calls may slightly slow workbook recalculation if you are retrieving large amounts of data.

Common Questions

1. What does Return On Capital (Last 12 Months) signify?
   It measures profitability relative to total capital. A higher value indicates more efficient capital usage.

2. Why am I getting “NA”?
   • The symbol might be invalid, delisted, or unsupported.
   • Your MarketXLS license might be expired or not accessible.

3. Does this formula update automatically?
   Yes. MarketXLS will refresh the data based on your refresh settings.

4. How often does the data update?
   The data is updated as frequently as MarketXLS can retrieve it from its servers, typically daily or as specified in your MarketXLS settings.

5. Can I reference a cell for the symbol?
   Yes. For example, if A1 contains a ticker symbol, use:

   =ReturnOnCapitalLTM(A1)

By integrating the Return On Capital (Last 12 Months) formula into your Excel analysis, you gain a powerful tool for evaluating how efficiently a company uses its capital over the past year.