Return On Equity (Last 12 Months) Formula in Excel

Welcome to this comprehensive guide on using the Return On Equity (Last 12 Months) formula in Excel with MarketXLS. By integrating this powerful function, you can quickly measure how effectively a company is using its shareholder investments to generate profit over the past year. This documentation covers everything you need to start using the formula, including syntax, parameters, examples, and best practices.

Understanding Return On Equity (Last 12 Months)

Return On Equity (ROE) over the last 12 months (LTM) represents a company's net income divided by its shareholders' equity for the same period. This formula is typically used to:

• Evaluate the company’s profitability relative to shareholder investment.
• Compare ROE across different companies in the same sector.
• Track changes in ROE over time for better insight into trends.

Key Benefits:

• Helps investors assess a company’s ability to generate returns.
• Useful for long-term equity valuation.
• Easy to incorporate into existing Excel models.

When to Use:

• When assessing a company’s financial performance.
• In portfolio analysis to compare profitability metrics.
• For quick insights on how well equity is utilized.

Syntax and Parameters

Below is the complete syntax for using this formula in Excel:

=ReturnOnEquityLTM(Symbol)

Return Value:

• Returns a numeric value representing the past 12 months’ Return On Equity.
• Returns "NA" if the symbol is invalid or data is unavailable.

?? Note: A valid MarketXLS license is required. If the license is invalid, the function will return "NA".

Examples and Usage

Below are typical ways to use the ReturnOnEquityLTM function in Excel:

1. Using a standard stock symbol:

   =ReturnOnEquityLTM("MSFT")

2. Using an index symbol (e.g., S&P 500):

   =ReturnOnEquityLTM("^SPX")

3. Using an options symbol:

   =ReturnOnEquityLTM("@MSFT 110122C00020000")

4. Using a crypto symbol:

   =ReturnOnEquityLTM("BTCUSD:DEFAULT")

? Pro Tip: Combine ReturnOnEquityLTM with other MarketXLS financial metrics (like EPS or Market Capitalization) to get a holistic view of a company’s financial standing.

Error Handling and Special Cases

• The function returns "NA" if the symbol is invalid or data is not found.
• Using the formula excessively for multiple symbols simultaneously might slow down Excel as it fetches real-time data.
• The last 12 months’ data is typically updated daily; results may vary based on data availability.

Common Questions

1. How often is the data updated?

The data is generally updated every 24 hours. However, this can vary based on the data provider’s availability.

2. Why do I get “NA” for some symbols?

An “NA” result indicates issues like:

• Invalid or unrecognized symbol.
• Temporarily unavailable underlying data.
• License or connectivity issues with MarketXLS.

3. Can I reference a cell for the symbol?

Yes, you can reference a cell containing the symbol, making it easier to batch-process multiple stocks. For instance:

=ReturnOnEquityLTM(A2)

4. Are there any performance considerations?

• Each function call retrieves data from the MarketXLS APIs.
• Using the function for many symbols at once can impact performance.
• Consider scheduling data refreshes or limiting simultaneous requests.

5. Can I use this formula with other MarketXLS ratios?

Absolutely. Start by evaluating Return On Equity (Last 12 Months), then add complementary ratios like Price-to-Book or EPS for a more robust analysis.

?? Note: Always ensure you have a stable internet connection and a valid MarketXLS license to avoid disruption of real-time data.

By following these steps and best practices, you can seamlessly integrate the Return On Equity (Last 12 Months) formula into your Excel workflow with MarketXLS and confidently measure a company’s efficiency in generating profits over the past year.