Year-on-year growth rate of operating profit in a single quarter
factor.formula
Year-on-year growth rate of operating profit in a single quarter:
Formula Description:
- :
Indicates the operating profit for the most recent quarter.
- :
Represents the operating profit in the same period last year (i.e. four quarters ago).
- :
It represents the absolute value of the operating profit in the same period last year. It is used for normalization to avoid the situation where the denominator is negative or zero, and to ensure that the calculation result of the growth rate is a meaningful value both positive and negative.
factor.explanation
This factor is a growth factor, which calculates the year-on-year growth rate of the company's operating profit in the most recent quarter, aiming to measure the changing trend of the company's profitability. Compared with the month-on-month data, the year-on-year data can better eliminate the interference of seasonal factors and reflect the real growth of the company's operations. The higher the index is, the stronger the company's profitability and the better its growth. In practical applications, attention should be paid to excluding the impact of extreme values and combining with other financial indicators for comprehensive analysis. This factor can be used as an important reference for evaluating the company's growth in a multi-factor model.