R&D intensity ratio
factor.formula
R&D intensity ratio:
In the formula:
- :
The total amount of R&D expenses in the trailing twelve months. R&D expenses refer to the expenditures made by an enterprise to develop new products, new technologies, and new processes, including salaries of R&D personnel, testing costs, material costs, etc. This indicator reflects the actual investment of an enterprise in R&D.
- :
The total operating income for the trailing twelve months. Operating income refers to the income realized by an enterprise from operating activities such as selling goods and providing services. This indicator reflects the main business scale of the enterprise.
factor.explanation
The R&D intensity ratio reflects the strength of a company's R&D investment and is an important indicator for measuring a company's innovation capability and growth potential. A higher ratio usually indicates that the company has a stronger investment and confidence in future development, and may be more likely to gain market recognition and a higher valuation level. It should be noted that there are large differences in R&D investment between different industries, so caution should be exercised when comparing across industries. This indicator can be used to identify high-quality companies with long-term growth potential.