Gross margin growth spillover
factor.formula
Among them, GMG represents the year-on-year growth rate of gross profit, and SRG represents the year-on-year growth rate of operating income.
This factor evaluates the marginal change in a company's profitability by calculating the difference between the year-on-year growth rate of gross profit and the year-on-year growth rate of operating income.
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Gross Margin Growth Rate. The calculation formula is: (Current period gross profit - Last year's gross profit) / Last year's gross profit. It reflects the growth rate of the company's gross profit and can measure the changes in the company's production efficiency or cost control capabilities.
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Sales Revenue Growth Rate. The calculation formula is: (current period sales revenue - same period last year sales revenue) / same period last year sales revenue. It reflects the growth rate of the company's sales scale and is an important indicator for measuring the company's growth potential.
factor.explanation
The factor is named "gross profit margin growth spillover" to highlight its core meaning: the part of gross profit margin growth that exceeds revenue growth. A positive value indicates that the growth rate of gross profit is faster than the growth rate of operating income, reflecting that the profitability of the company has increased while the revenue has expanded, which may be due to factors such as improved product pricing ability, effective cost control, or optimized product structure; a negative value is the opposite, indicating that the growth rate of gross profit margin is slower than the growth of revenue, which may mean that the company is facing greater cost pressure or intensified market competition. This indicator helps investors identify companies with marginal improvements in profitability and further analyze their sustainability. Compared with a single gross profit growth or operating income growth indicator, this indicator can more effectively reflect the comprehensive changes in corporate profitability and operating efficiency, and is an effective supplementary indicator for judging the quality of corporate growth. In quantitative investment, this indicator can be used as an important part of the stock selection strategy to screen high-quality companies with profit growth potential.