Return On Invested Capital (Current Qtr) Formula in Excel

Use the Return On Invested Capital (Current Qtr) formula in Excel with MarketXLS to quickly evaluate a company's efficiency in generating profits from its invested capital. By retrieving the most recent quarterly data, you gain a timely insight into how effectively management is deploying resources. This formula helps you make more informed decisions about potential investments or portfolio holdings.

Understanding Return On Invested Capital (Current Qtr)

The Return On Invested Capital (Current Qtr) metric provides the percentage return the company generates on its total invested capital for the latest quarter. Here’s why it’s beneficial:

• Measure profitability: Quickly see how much net income is produced from existing capital.
• Track quarter-to-quarter changes: This metric can show trends in management efficiency over multiple quarters.
• Benchmark against peers: Compare the ability of different companies to generate returns on their capital.

Syntax and Parameters

Below is the syntax for using the ReturnOnInvestedCapitalQuarter function in Excel:

=ReturnOnInvestedCapitalQuarter(Symbol)

Use the parameter table below for reference:

Return Value

• Returns a numeric value indicating the return on invested capital for the specified ticker’s current quarter.
• If the symbol is invalid, or if data is unavailable, the function returns "NA".

Error Handling

• Invalid symbol: Returns "NA".
• No license / Expired license: Returns a license warning message.
• Network or data retrieval issues: Returns "NA".

Special Cases and Limitations

• The formula makes an on-demand request to MarketXLS servers. If the connection is slow or unavailable, you may see delays or "NA" results.
• Non-standard or delisted symbols may not return results.

Examples and Usage

Below are some typical ways to call the function using various symbol formats:

1. Using a regular symbol reference:

   =ReturnOnInvestedCapitalQuarter("MSFT")

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

   =ReturnOnInvestedCapitalQuarter("^SPX")

3. Using an option symbol:

   =ReturnOnInvestedCapitalQuarter("@MSFT 110122C00020000")

4. Using a cryptocurrency symbol:

   =ReturnOnInvestedCapitalQuarter("BTCUSD:DEFAULT")

? Pro Tip: Combine ReturnOnInvestedCapitalQuarter with other key ratios (e.g., P/E ratio, EPS, Market Cap) to get a well-rounded financial analysis of the company.

Real-World Application

1. In portfolio management:
   • Identify undervalued stocks by comparing Return On Invested Capital across your watchlist.
   • Combine with a company’s growth metrics to find long-term opportunities.
2. For quarterly performance reviews:
   • Update your Excel sheet each quarter to track changes and react quickly to underperforming holdings.

Common Questions

1. Why does the function return “NA”?

   • Check if your symbol is correct.
   • Ensure your MarketXLS license is valid.
   • Verify your internet connection for data retrieval.

2. How often is the data updated?

   • The data typically updates once the company’s quarterly financial results are released and synced with MarketXLS.

3. Can I use cell references for symbols?

   • Yes, simply reference a cell containing the symbol. For example:

     =ReturnOnInvestedCapitalQuarter(A2)

4. Why do I see a delay when recalculating?

   • The function fetches data from MarketXLS servers on-demand. Over large spreadsheets or slow connections, there may be a short delay.

?? Note: Always verify your data sources and cross-check critical company metrics with official filings or trusted analysts before making investment decisions.