Tax Efficiency (Historical) Formula in Excel

Tax Efficiency (Historical) in Excel is a powerful MarketXLS function that helps you measure how effectively a company (or individual) is minimizing tax obligations within legal boundaries. By leveraging this formula, you can:

• Quickly compare tax efficiency between different companies.
• Track changes in tax effectiveness across quarters, years, or trailing twelve months (TTM).
• Make more informed financial decisions using historical fundamental data.

Understanding Tax Efficiency (Historical)

Tax Efficiency (Historical) provides insights into how tax strategies influence a firm’s net income and cash flows. It is highly valuable when performing:

• Year-over-year tax analysis.
  -Quarterly comparisons.
• TTM evaluations for a comprehensive look at ongoing performance.

Key benefits include:

• Identifying patterns in tax planning.
• Assessing the consistency and sustainability of a company's tax strategy.
• Benchmarking a company’s tax posture against peers or industry averages.

Use this formula when you need historical tax data to evaluate performance over specific periods, especially for investment or strategic planning decisions.

Syntax and Parameters

Use the hf_Tax_Efficiency function directly in your Excel worksheet after installing or enabling MarketXLS. Below is the standard syntax:

=hf_Tax_Efficiency(Symbol, year, [quarter], [TTM])

?? Note: If the function cannot retrieve valid data, it returns "NA". Make sure you have a valid MarketXLS subscription for historical fundamentals.

Return Value:
• A numeric value indicating the tax efficiency percentage/ratio if successful.
• "NA" in case of invalid ticker symbol, subscription issues, or unavailable data.

Examples and Usage

Below are practical ways to use the Tax Efficiency (Historical) formula in Excel:

Basic Example

=hf_Tax_Efficiency("MSFT", 2022)

Retrieves the tax efficiency value for Microsoft in the year 2022.

Including a Quarter

=hf_Tax_Efficiency("MSFT", 2022, 2)

Returns Microsoft’s tax efficiency for the year 2022 and calendar quarter 2.

Trailing Twelve Months (TTM)

=hf_Tax_Efficiency("MSFT", 2022, 3, "TTM")

Returns the trailing 12-month tax efficiency for Microsoft starting from Q3 2022.

Using Special References

• Last Quarter (lq):

=hf_Tax_Efficiency("MSFT", "lq")

• Last Quarter - 1 (lq-1):

=hf_Tax_Efficiency("MSFT", "lq-1")

• Last Year (ly):

=hf_Tax_Efficiency("MSFT", "ly")

• Last 12 Months (lt):

=hf_Tax_Efficiency("MSFT", "lt")

? Pro Tip: When specifying the year or special references like “lq” or “ly,” MarketXLS will automatically fetch the correct historical data.

Date Input Formats

If you are using a date-based approach for the 'year' parameter or referencing cells with specific dates, you can pass those dates in multiple ways:

1. Cell references:

   =hf_Tax_Efficiency("MSFT", A1)

2. Direct dates:

   =hf_Tax_Efficiency("MSFT", "2024-03-15")

3. Excel date functions:

   =hf_Tax_Efficiency("MSFT", TEXT(A1,"yyyy-mm-dd"))

Common Questions

1. What happens if an invalid symbol is provided?

The function returns "NA" if the symbol is not recognized or supported.

2. Why am I getting “NA” repeatedly?

Possible reasons:

• MarketXLS subscription level does not include historical fundamental data.
• The provided symbol or period data is not available (e.g., out of range or invalid).

3. Is Tax Efficiency (Historical) resource-intensive to run?

It performs a remote query to retrieve data. Performance impact is minimal, but repeated large queries can slow down Excel. Use it selectively or with caching for best results.

4. Can I use any date range or year format?

Yes. The function supports extended notation like “lq,” “ly,” and “lt.” When using explicit dates, confirm your date format is correct.

5. Where can I learn about related historical fundamentals?

MarketXLS provides additional historical fundamental metrics:

• Revenue (Historical)
• Cost Of Revenue (Historical)
• Gross Profit (Historical)
• R & D Expenses (Historical)
• Selling General and Administrative Expense (Historical)

Use the respective MarketXLS formulas to get a comprehensive view of a company’s financials.

?? Note: Must have an active MarketXLS historical fundamentals subscription to use hf_Tax_Efficiency and related functions.