Year-on-year growth rate of cost-profit ratio in a single quarter
factor.formula
Year-on-year growth rate of cost-profit ratio in a single quarter:
Formula explanation:
- :
Refers to the cost-to-profit ratio of the most recent quarter published in the reporting period. The cost-to-profit ratio is calculated as (operating income - operating costs - taxes and surcharges - sales expenses - administrative expenses - research and development expenses) / operating income. This indicator reflects the profitability of an enterprise after deducting various costs and expenses. The higher the value, the stronger the profitability of the enterprise.
- :
Refers to the cost-expense-profit ratio published in the same quarter of the previous year, calculated in the same way as
CurrentQuarterCostExpenseMargin. Use the absolute value functionabs()to avoid the unstable calculation result caused by dividing by a negative number when the cost-expense-profit ratio of the previous year is negative, and make the formula calculation result represent the absolute value of the rate of change.
factor.explanation
This factor belongs to the growth factor. Specifically, it measures the year-on-year growth of the company's cost-to-profit ratio in a single quarter. Compared with the month-on-month growth rate, the year-on-year growth rate can better reflect the real growth trend of the company's profitability and reduce the impact of seasonal fluctuations. This factor uses single-quarter data rather than TTM (last 12 months) data, which can better capture the short-term changes in the company's profitability. The reason for choosing to use growth rate rather than incremental growth is that the growth rate is more comparable and can better reflect the growth between companies of different sizes. The cost-to-profit ratio is an important indicator to measure a company's profitability. Its growth represents an improvement in the company's profitability and is usually seen as a signal of improved business conditions. This factor can be used in conjunction with other fundamental factors to build a more comprehensive quantitative stock selection strategy.