Operational efficiency deviation
factor.formula
Linear Regression Model:
in:
- :
Represents the i-th quarter, i∈ {0, 1, 2, ..., N-1}, where 0 represents the most recent quarter and N is the number of retrospective quarters, with N=8 by default.
- :
The Z-Score standardized value of the total operating cost in the i-th quarter. The Z-Score standardized formula is: $z(x) = (x - \mu) / \sigma$, where $\mu$ is the sample mean and $\sigma$ is the sample standard deviation. The purpose of standardization is to eliminate the impact of different variable dimensions and make the regression results more comparable.
- :
The Z-Score standardized value of fixed assets in the i-th quarter. The Z-Score standardized formula is: $z(x) = (x - \mu) / \sigma$, where $\mu$ is the sample mean and $\sigma$ is the sample standard deviation. The purpose of standardization is to eliminate the impact of different variable dimensions and make the regression results more comparable.
- :
The intercept term of the linear regression model represents the standardized value of the expected total operating cost when the standardized value of fixed assets is 0.
- :
The slope term of the linear regression model represents the change in the standardized value of total operating costs for each unit increase in the standardized value of fixed assets, reflecting the impact of fixed asset investment on operating costs.
- :
The regression residual of the ith quarter represents the deviation between the standardized value of actual operating costs and the standardized value of operating costs expected by the model. The residual term reflects the impact of factors that the model fails to explain on operating costs and is the core of this factor.
factor.explanation
This factor examines the operating efficiency of an enterprise based on the relationship between operating costs and fixed asset investment. In general, there is a certain correlation between an enterprise's operating costs and fixed asset investment, but differences in operating efficiency can cause actual operating costs to deviate from the expected level. When an enterprise's capacity utilization rate is high and its operating management efficiency is high, it can achieve full utilization of fixed assets at a lower operating cost. At this time, the actual operating cost will be lower than the level expected based on fixed asset investment, which is expressed as a negative residual; conversely, when the enterprise's capacity utilization rate is low and its operating management efficiency is low, it will generate higher operating costs, which is expressed as a positive residual. Therefore, this factor can be regarded as an important indicator for measuring the operating efficiency of an enterprise. The larger the absolute value of the residual, the higher the degree of deviation, indicating that the operating efficiency of the enterprise has greater fluctuations compared with historical levels or companies in the same industry. This factor captures the part of operating costs that can be explained by non-fixed asset investment through a regression model, which usually reflects the management capabilities and operating efficiency of the enterprise. This factor is a relative indicator and tends to depict the changes and fluctuations in the operating efficiency of an enterprise rather than the absolute efficiency level.