Quarter-on-Quarter Growth Rate of Parent Company's Equity
factor.formula
Month-on-month growth rate of parent company's shareholders' equity:
Formula Description:
- :
Equity attributable to the parent company's shareholders in the most recent reporting period. This value comes directly from the company's regular financial reports, usually the portion of the owner's equity (or shareholders' equity) attributable to the parent company in the balance sheet. Note that the data selected here is a single quarter, not a rolling 12-month (TTM) data.
- :
The equity attributable to the parent company's shareholders in the previous reporting period is the data from the previous reporting period adjacent to the most recent reporting period. Similarly, this value comes from the company's regular financial report and uses single-quarter data.
- :
The absolute value of the equity attributable to the parent company in the previous reporting period. The purpose of using the absolute value is to avoid abnormal growth rate calculation when the equity in the previous period is negative, so as to make the meaning of the growth rate more intuitive.
factor.explanation
This factor measures the short-term growth of a company by calculating the rate of change of equity attributable to the parent company between the company's most recent reporting period and the previous reporting period. This indicator selects single-quarter data to calculate the month-on-month growth rate, focusing on the company's short-term operating conditions and equity expansion rate. The month-on-month growth rate can reflect the company's growth in the most recent quarter compared to the previous quarter, and can better capture short-term changes than the year-on-year growth rate. The growth rate is more comparable than the increment, which facilitates comparison across companies and across time, but for companies with a small base, the growth rate may fluctuate greatly. Using the absolute value of the previous period's equity as the denominator can avoid errors in calculating the growth rate due to a negative denominator.