There have been increasing efforts to compute magnetic exchange coupling constants for transition metal complexes and magnetic insulators using the magnetic force theorem and Green’s function-based linear response methods. These were originally conceived for magnetic metals, yet it has not been clear how these methods fare conceptually with the conventional models based on electron-correlation interactions among so-called magnetic orbitals. We present a spinor-based theoretical analysis pertinent to the magnetic force theorem and linear response theory using Brillouin–Wigner perturbation method and Green’s function perturbation method, and we shed light on the conceptual nature of the Lichtenstein formula in its applications for calculations of the total energy and magnetic exchange coupling constants for both molecules and solids. Derivation of the magnetic force theorem in this perturbational analysis identifies the first-order energy correction terms, which are considered as the ferromagnetic component for the magnetic exchange interactions of transition metal compounds but are not included in the Lichtenstein formula. Detailed perturbational analysis of the energy components involved in the magnetic force theorem identifies the energy components that are missing in the Lichtenstein formula but are critical in the Anderson’s model for transition metal complexes and magnetic insulators where magnetic orbitals can overlap.