Year-on-year change rate of sales cost rate in a single quarter
factor.formula
Year-on-year change rate of cost of sales in a single quarter:
Formula explanation:
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Represents the cost of sales ratio for the most recent reporting period (quarter t), calculated as cost of sales for that quarter divided by operating income for that quarter.
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Represents the sales cost rate of the same period of the previous year (quarter t-4), calculated as the sales cost of that quarter divided by the operating income of that quarter.
factor.explanation
This factor quantifies the year-on-year change in the company's cost of sales ratio in a single quarter, and its specific explanation is as follows:
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Positive value (year-on-year growth rate > 0): indicates that the cost of sales ratio in this quarter has increased compared with the same period last year. This may indicate that the company's cost control has weakened, or it is facing pressure from rising upstream raw material or labor costs. In addition, it may also be due to changes in the sales structure, resulting in an increase in the cost ratio.
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Negative value (year-on-year growth rate < 0): indicates that the cost of sales ratio in this quarter has decreased compared with the same period last year. This may mean that the company's cost control ability has increased, or it has benefited from economies of scale, technological progress, etc., resulting in a decrease in unit sales costs. It may also be due to changes in the sales structure, resulting in a decrease in the cost ratio.
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Absolute value of the rate of change: The absolute value of the rate of change reflects the severity of the year-on-year change in the company's cost of sales ratio. The larger the absolute value, the more obvious the change in the company's cost structure.
Application scenario: This factor can be used for:
- Evaluating corporate profitability: Changes in the cost of sales ratio directly affect the gross profit margin, and thus affect the profitability of the company. By tracking the trend of changes in this indicator, investors can preliminarily judge the health of the company's profitability.
- Compare companies in the same industry: Comparing the trend of sales cost rate of different companies within the industry helps to identify companies with more competitive advantages in cost control.
- Building quantitative investment strategies: As a relatively stable factor, this indicator is often used in multi-factor models to find investment targets with cost advantages or improved cost control capabilities.
Risk warning: This indicator only reflects the year-on-year change in sales cost rate and cannot independently explain all operating conditions. Investors need to combine other financial indicators and industry information to comprehensively analyze the company's fundamentals.