Return On Equity (ROE - Last 12 Months) Formula in Excel

The Return On Equity (ROE - Last 12 Months) formula in Excel with MarketXLS helps investors and analysts measure a company's profitability relative to shareholders' equity over the past 12 months. By using this function, you can quickly evaluate how effectively a company leverages its capital to generate profits.

Understanding Return On Equity (ROE - Last 12 Months)

• Purpose and Use Cases
  The Return On Equity measures net income as a percentage of shareholders’ equity. It shows how effectively a company uses the money invested by shareholders.

• Key Benefits

  • Provides insight into management effectiveness.
  • Helps compare profitability across companies in the same industry.
  • Assists in identifying high-performing stocks based on returns generated on equity.

• When to Use
  Use this function whenever you need to quickly assess how well a company uses shareholders’ equity to generate profit, especially when screening or comparing multiple companies.

Syntax and Parameters

=ReturnOnEquity(Symbol)

• Return Value
  This function returns the Return on Equity (as a percentage or numeric value) for the past 12 months. If the symbol is invalid, the license is not active, or data cannot be retrieved, the function returns "NA".

• Error Handling

  • Returns "NA" if an invalid symbol is used or if data is unavailable.
  • Returns "NA" if the MarketXLS license is not valid.

• Special Cases and Limitations

  • Non-standard or unsupported symbols may yield "NA".
  • Data relies on external APIs, so availability might vary.

• Performance Considerations
  Since this function retrieves data from remote servers, you should ensure a stable internet connection. Excessive calls for numerous symbols might slightly affect Excel performance.

Examples and Usage

Below are common ways to use the ReturnOnEquity function in Excel:

1. Using a regular stock ticker:

   =ReturnOnEquity("MSFT")

2. Referencing a cell containing the ticker:

   =ReturnOnEquity(A1)

   ? Pro Tip: Ensure the cell (A1 in this example) contains a valid ticker symbol (e.g., "AAPL").

3. Retrieving ROE for an index:

   =ReturnOnEquity("^SPX")

4. Checking an option contract:

   =ReturnOnEquity("@MSFT 110122C00020000")

5. Using a cryptocurrency symbol:

   =ReturnOnEquity("BTCUSD:DEFAULT")

?? Note: If your symbol or contract format is incorrect, the function will return "NA".

Common Questions

1. Why am I getting "NA" as the return value?

   • Ensure your symbol is valid and your MarketXLS license is active.
   • Confirm that your internet connection is stable.

2. How often is the data updated?

   • Data is typically updated once every 24 hours, but it may vary depending on the data source.

3. Can I use this formula for all international symbols?

   • MarketXLS supports many global symbols. However, some foreign or less common tickers may not be available.

4. Are there any alternatives to measure profitability?

   • Yes, you can use other MarketXLS functions like EPS (TTM) or Market Capitalization for broader analysis.

5. Does it work with historical dates?

   • This specific function calculates the latest trailing 12-month ROE, so historical date parameters are not applicable.

? Pro Tip: Combine ReturnOnEquity with other key ratio functions (e.g., MarketCapitalization) for a comprehensive financial analysis in Excel.