This factor belongs to the growth factor. By comparing the company's total operating costs in this quarter with the same period last year, it evaluates the company's changes in cost control and scale expansion. Generally speaking, the growth rate of total operating costs should match the growth rate of revenue. Too high a cost growth rate may indicate a decline in operating efficiency or intensified industry competition.

Growth factor construction dimensions:

1. Time dimension: Usually two dimensions are used: year-on-year (YoY) and quarter-on-quarter (QoQ). Here, year-on-year is used because it can eliminate the impact of seasonal factors and more accurately reflect the company's long-term growth trend. Quarter-on-quarter is more suitable for capturing short-term changes.

2. Data cycle: The TTM data of the last 12 months or single quarter data can be used. Single quarter data can more timely reflect the latest operating conditions, but may be greatly affected by short-term fluctuations; while TTM data is smoother and more suitable for evaluating long-term trends.

3. Indicator type: Growth rate (year-on-year or quarter-on-quarter growth rate) or increment (year-on-year or quarter-on-quarter increment) can be used. Growth rate is more suitable for cross-company comparison and is more commonly used; increment can better reflect the change of absolute scale, but may be affected by the base number.

Factor application scenario:

• Growth assessment: Measure the growth ability of enterprises in cost control. Too high or too low growth rate may indicate risk.

• Profitability analysis: Combined with revenue growth rate, evaluate the change of company profitability. Cost growth faster than revenue growth may lead to a decline in profit margin.

• Industry comparison: Compare the cost growth rate between different companies in the industry and find companies with cost advantages.

Factor characteristics:

• Advantages: Simple and easy to understand, easy to calculate, and can better reflect the cost change trend of the company.

• Limitations: Single quarter data is highly volatile and needs to be combined with other indicators for comprehensive analysis; only reflecting the change of total cost, it is impossible to deeply analyze the cost structure.

Tips: In actual use, it is recommended to use this indicator in combination with other financial indicators (such as revenue growth rate, gross profit margin, etc.) and interpret it in combination with industry characteristics. In addition, it is necessary to pay attention to the processing of extreme values ​​to reduce the impact of outliers.