Year-on-year growth rate of operating profit margin in a single quarter
factor.formula
Year-on-year growth rate of operating profit margin in a single quarter:
Formula Description:
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The operating profit margin for the most recent quarter is calculated as: (current operating profit / current operating income) * 100%. This indicator reflects the operating profit generated by each unit of operating income during the reporting period and is an important indicator for measuring corporate profitability. Selecting single-quarter data can more promptly reflect short-term changes in the company's operating conditions.
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The operating profit margin for a single quarter in the same period of the previous year (i.e. 4 quarters ago) is calculated in the same way as OM_q. Using data from the same period of the previous year can effectively eliminate the impact of seasonal factors, making data from different time periods more comparable.
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The absolute value of the operating profit margin for the same quarter of the previous year is used as the denominator to ensure that the calculated growth rate is in percentage form and avoid the situation where the denominator is zero. At the same time, using the absolute value can better reflect the magnitude of the change and avoid information loss caused by the cancellation of positive and negative signs. When the profit margin in the same period of the previous year is negative, it can also ensure the relative rationality of the result.
factor.explanation
The year-on-year growth rate of operating profit margin in a single quarter refers to the percentage change in the operating profit margin in the most recent reporting period compared to the same period last year. This indicator reflects the improvement or decline in the company's profitability and operating efficiency during the reporting period. A positive value indicates that the company's profitability has increased, while a negative value indicates that profitability has decreased. Compared with the growth volume, the growth rate is more comparable and convenient for horizontal comparison of companies of different sizes. At the same time, it is not easily affected by the absolute value of the basic indicators and can better reflect the real growth trend. This factor belongs to the category of growth factors and is also related to the company's profitability. It can be used in quantitative stock selection models to discover high-quality companies with growth potential.