Year-on-year change in gross profit margin for a single quarter
factor.formula
Year-on-year change in gross profit margin for a single quarter:
This formula calculates the year-on-year change rate of gross profit margin for a single quarter, where:
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Indicates the gross profit margin for the most recent reporting quarter. This value is obtained by deducting operating costs from current operating income and then dividing it by current operating income.
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Indicates the gross profit margin of a single quarter in the same period of the previous year (i.e. before the fourth quarter). The calculation method is the same as GPM_q, but the data of the same period of the previous year is used.
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It represents the absolute value of the gross profit margin for a single quarter in the same period of the previous year. It is used to avoid distortion of the change rate calculation result due to a denominator of zero or a negative value, and to ensure the rationality of the change rate calculation.
factor.explanation
This factor calculates the rate of change of the company's gross profit margin in the most recent reporting period compared to the gross profit margin in the same period of the previous year. A positive value indicates a year-on-year increase in gross profit margin, indicating that the company's profitability has improved; a negative value indicates a year-on-year decrease in gross profit margin, which may mean a decline in the company's profitability. This indicator is used to measure the growth of a company's profitability in a specific reporting period, especially for horizontal comparisons of the performance of different companies in the same period, and can be used as one of the indicators to measure a company's competitiveness and operating efficiency.