Year-on-year change in operating profit margin for a single quarter
factor.formula
Year-on-year change in operating profit margin for a single quarter:
Formula explanation:
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It represents the single-quarter operating profit margin of the most recent reporting period (period t). The operating profit margin is calculated as: operating profit / operating income, which reflects the company's ability to make profits through its main business.
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Indicates the quarterly operating profit margin of the same period of the previous year (period t-4). The time period is aligned with OM_t to ensure the rationality of the comparison.
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The absolute value of the quarterly operating profit margin in the same period of the previous year (period t-4) is used as the denominator for normalization to avoid the situation where the denominator is zero and make the growth rate more comparable. Using absolute values to handle negative denominators can effectively avoid logical problems in the calculation of growth rates.
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Indicates the year-on-year change rate of operating profit margin in a single quarter. This indicator measures the percentage change of operating profit margin in this single quarter relative to the same period last year. A positive value indicates a year-on-year increase in profit margin, and a negative value indicates a year-on-year decrease in profit margin.
factor.explanation
This factor is used to measure the changing trend of a company's profitability in the short term (single quarter). Compared with the year-on-year growth rate, it can better reflect the changes in the company's recent operating conditions. If the factor value is positive, it means that the company's profitability in this quarter has increased compared with the same period last year; otherwise, it means that profitability has decreased. This factor can be used in combination with other financial indicators to more comprehensively evaluate the company's profitability and development potential. For cyclical industries, it is necessary to analyze this indicator in combination with the cyclical characteristics of the industry.