Net operating asset turnover (NOAT)
factor.formula
Net Operating Asset Turnover (NOAT):
Average net operating assets:
Net operating assets:
The meanings of the parameters in the formula are as follows:
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Refers to the total operating income for the most recent 12 consecutive months. It uses a rolling calculation method to reflect the company's latest operating performance in a more timely manner. This indicator eliminates the impact of seasonal factors and can effectively smooth out the interference caused by fluctuations in single-quarter financial data.
- :
Refers to the arithmetic mean of net operating assets at the beginning and end of a period. The use of this average is to more accurately measure the average level of net operating assets owned by the enterprise during the reporting period in the time dimension, avoiding deviations caused by fluctuations in point-in-time data.
- :
Refers to the balance after deducting operating liabilities from the operating assets of an enterprise. It can also be calculated by adding total shareholders' equity (including minority shareholders' equity) to financial liabilities and then deducting financial assets. It is a core indicator for measuring the assets used in an enterprise's operating activities, excluding the impact of non-operating financial activities and focusing more on the asset utilization efficiency of the enterprise's core business.
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Refers to the total equity that a company's owners have in the company's assets, including parent company shareholders' equity and minority shareholders' equity. It represents the company's owners' ownership of the company's net assets.
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Refers to liabilities undertaken by an enterprise that need to be repaid with cash or other financial assets, such as short-term loans, long-term loans, bonds payable, etc. It reflects the debts assumed by the company in its financial activities.
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Refers to assets owned by the enterprise that have economic value and can generate future cash inflows, such as trading financial assets, available-for-sale financial assets, held-to-maturity investments, etc. It reflects the financial assets held by the company for investment or trading.
factor.explanation
Net operating asset turnover (NOAT) is a key indicator for measuring the operating efficiency of an enterprise. It is more valuable than the traditional total asset turnover. NOAT focuses on the asset efficiency of an enterprise's operating activities, eliminating the interference of financial assets and liabilities, and thus more accurately reflects the company's ability to generate revenue using its core business assets. A higher NOAT indicates that the company's management can effectively use its operating assets and convert invested resources into revenue, which also means that the company may have higher profitability and operating efficiency. Investors and analysts often use NOAT to compare the operating efficiency of different companies in the same industry and analyze the long-term trend of a company's operating efficiency.