Gross Margin Growth Difference
factor.formula
This factor directly reflects the speed of changes in corporate profitability relative to sales revenue by calculating the difference between gross profit growth rate and operating income growth rate. A positive value indicates that corporate profitability is growing faster than sales growth, while a negative value indicates the opposite.
factor.explanation
Gross Margin Growth Difference is an indicator that measures a company's profitability relative to its sales growth. It reflects whether the company's profitability is increasing at the same time as its sales are growing, and the difference between the two. If the growth rate of gross profit is faster than the growth rate of sales revenue, it may indicate that the company has stronger cost control capabilities, higher pricing power, or optimized product structure. On the contrary, it may imply rising costs and declining product competitiveness. Investors usually use this factor to judge the operating efficiency and profit quality of a company, and as a reference indicator for future profit trends. The larger the value of this factor, the better, indicating that the company's profitability is increasing.