This component computes the XIRR (Extended Internal Rate of Return) just like in spreadsheet tools like Microsoft Excel and Google Sheet. Adopt this component to track the profitability of one or more investment projects with non-periodic transactions/cash flows.
The component adopts the Java library ‘java-xirr’ version 1.2 (MIT license). More info available at: github.com/RayDeCampo/java-xirr
DISCLAIMER: To adopt this library the component downloads on its first execution in a new workflow from search.maven.org. Make sure your KNIME has internet access when executing the component in a new workflow for the first time.
DISCLAIMER: The adopted library does not perform well with multiple negative cash flows.
The component calculates the internal rate of return for a schedule of cash flows that is not necessarily periodic. It starts from a series of cash flows and their date to approximate the value of XIRR for each of the defined portfolio/project that the cash flows are grouped by. Make sure that you have at least one column for the dates of the transactions in a date format, one column for the cash flows (for each portfolio/project the first transaction needs to be negative), and one column for the project/portfolio by which you want the transactions to be grouped by.
Microsoft Excel Docs: support.microsoft.com/en-us/office/xirr-function-de1242ec-6477-445b-b11b-a303ad9adc9d
Google Sheets Docs: support.google.com/docs/answer/3093266
This component, verified by KNIME, was developed by finance analytics experts at Mydral, KNIME Partner of the Year 2022: mydral.com/en/knime-uk
- Type: TableInvestments DataA KNIME Table where each row represents a financial transaction. A column of type String is necessary to identify the financial project/portfolio. A column of type Double or Integer is necessary to identify the value of the financial transactions. A column of type Zoned/Local Date (Time) is necessary to identify the date of the transaction.