Year-on-year growth rate of operating profit in a single quarter
factor.formula
Year-on-year growth rate of operating profit in a single quarter:
Formula Description:
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Indicates the company's operating profit for the most recent quarter. Operating profit refers to the profit generated by an enterprise from its main business activities such as selling goods or providing services. It is an important indicator to measure the profitability of an enterprise's main business.
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Represents the company's operating profit in the same period last year (i.e., quarter t-4). Using the same period last year's data as a comparison benchmark can effectively eliminate the impact of seasonal factors on profits and more accurately reflect the company's true profitability changes.
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Indicates the absolute value, which is used to prevent the denominator from being negative or zero. When the operating profit of the same period last year is negative, using the absolute value can avoid deviations in the growth rate calculation results and ensure the rationality of the calculation results. When the operating profit of the same period last year is zero, the calculation results will also be meaningless.
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This formula calculates the growth rate of the current quarter's operating profit relative to the same period last year. A positive growth rate indicates that the company's profitability has increased year-on-year; a negative growth rate indicates that the company's profitability has decreased year-on-year. The size of the growth rate reflects the magnitude of the change in the company's profitability.
factor.explanation
This factor is a growth factor, and its core function is to measure the growth of a company's short-term profitability. Selecting the year-on-year growth rate of operating profit in a single quarter can effectively eliminate the impact of seasonal factors and make the analysis results more accurate. High-growth operating profits are often accompanied by rapid expansion of a company's business and improved profitability. When calculating, the operating profit of the most recent quarter is compared with the operating profit of the same period last year, and the absolute value of the operating profit of the same period last year is used as the denominator to avoid the situation where the denominator is negative or zero, and to ensure the rationality and comparability of the calculation results. This factor is often used in quantitative investment to screen stocks with high growth potential.