Return On Invested Capital (ROIC - Last 12 Months) Formula in Excel

Gain insights into how efficiently a company allocates its capital by leveraging the Return On Invested Capital (ROIC - Last 12 Months) formula in Excel, powered by MarketXLS. This formula retrieves the company’s net income over the last 12 months, divided by its invested capital, helping you evaluate performance at a glance.

Understanding Return On Invested Capital (ROIC - Last 12 Months)

• Purpose and Use Cases: The ReturnOnInvestedCapitalOneYear function calculates how effectively a company’s capital is being used to generate profits over the past year.
• Key Benefits:
  • Offers a clear picture of capital efficiency
  • Helps compare performance across companies
  • Aids in value-based management and investment decision-making
• When to Use: Use this function when analyzing a company’s investment returns over a trailing 12-month period to inform buy, hold, or sell decisions.

Syntax and Parameters

=ReturnOnInvestedCapitalOneYear(Symbol)

Return Value:
• Returns a numeric value representing the ROIC (in percentage or decimal form, depending on your Excel formatting).
• If the Symbol is invalid or your license is inactive, the function returns "NA".

?? Note: This function does not require date parameters. Date-based formats (cell references, direct dates, or Excel date functions) are not applicable here.

? Pro Tip: Format the cell as a percentage for quick viewing of ROIC in percentage terms.

Examples and Usage

Below are a few practical examples:

1. Retrieve ROIC for a standard equity symbol:

   =ReturnOnInvestedCapitalOneYear("MSFT")

2. Retrieve ROIC for an index:

   =ReturnOnInvestedCapitalOneYear("^SPX")

3. Retrieve ROIC for an options contract:

   =ReturnOnInvestedCapitalOneYear("@MSFT 110122C00020000")

4. Retrieve ROIC for a cryptocurrency pair:

   =ReturnOnInvestedCapitalOneYear("BTCUSD:DEFAULT")

?? Note: Ensure you have an active internet connection and a valid MarketXLS license, or the formula will return "NA".

Common Questions

1. What does “NA” mean?

   • It indicates either an invalid Symbol or an issue with your license/connection.

2. How often is the ROIC data updated?

   • Data is typically updated daily, but it depends on the data source’s schedule. Check MarketXLS documentation for more details.

3. Can I use cell references for the symbol?

   • Yes, you can reference a cell containing "MSFT", "^SPX", or any valid symbol:

     =ReturnOnInvestedCapitalOneYear(A1)

4. Are there any performance considerations?

   • As the function requests live or recent data, performance can be influenced by internet speed and MarketXLS server response times.

5. Is the ROIC calculation always based on the past 12 months?

   • Yes. The function specifically returns the net income over the trailing 12 months divided by invested capital.

Use this formula to streamline your financial analysis and make more informed investment decisions with quick access to a company’s ROIC metric.