The year-on-year growth rate of annual liabilities reflects the changes in the scale of a company's liabilities in the past year and is an important indicator for measuring changes in a company's financial leverage. Significant changes in this indicator often indicate changes in a company's operating strategy, financing preferences or financial risk profile. In the historical backtesting of the A-share market, the relationship between this indicator and future earnings is not a linear relationship, but is affected by the statistical interval. Longer statistical intervals (such as five years) show a negative correlation, which may reflect the risks brought about by long-term debt expansion; while shorter statistical intervals (such as annual or quarterly) show a positive correlation, which may suggest that moderate debt expansion will help improve the company's performance. This indicator is usually used in conjunction with other financial indicators (such as debt-to-asset ratio, current ratio, etc.) to more comprehensively assess the company's financial health and risk level.