The annual logarithmic growth rate of total debt reflects the change in the size of a company's debt this year relative to the previous year, and is an effective measure of the company's financing activities and changes in financial leverage. The purpose of logarithmicizing this factor is to smooth the data, reduce the impact of outliers, and make the data more consistent with the requirements of statistical analysis. Studies have shown that over a longer time span (such as five years), this factor is negatively correlated with future stock returns, that is, companies with faster debt growth may have lower future returns, which may be related to over-financing and potential financial risks. However, over a shorter time span (such as an annual or quarterly), this factor may be positively correlated with stock returns, which may reflect the short-term growth effect brought about by the company's active expansion and investment. Therefore, when applying this factor, it is necessary to make appropriate adjustments and interpretations based on the research time span and investment objectives.