Year-on-year inventory growth rate
factor.formula
Year-on-year inventory growth rate:
This formula calculates the percentage growth of a company's inventory at the end of the reporting period compared to the same period of the previous year. The specific parameters have the following meanings:
- :
The amount of inventory a company has at the end of the current reporting period. Inventory includes raw materials, work in progress, and finished goods.
- :
The amount of inventory a company had at the end of the previous year's reporting period. The time span here is usually one year.
factor.explanation
This factor reflects the change in the company's inventory level at the end of the current reporting period relative to the same period of the previous year. A lower year-on-year inventory growth rate is generally regarded as a positive signal, indicating that the company may have efficient inventory management and good sales capabilities, while a negative growth rate may indicate the risk of inventory backlog and weak sales. This factor can be used to measure the company's operating efficiency and potential growth, and as an important input in quantitative investment strategies.