① Factor positioning: This factor belongs to the growth factor, but also has the characteristics of quality factors. It not only reflects the growth change of the company's invested capital efficiency, but also indirectly reflects the trend of changes in the company's profitability and operating quality. ② Calculation period selection: Using single quarter data for quarter-on-quarter calculation can capture short-term changes in the company's operating conditions more timely than TTM (rolling 12 months) data. The year-on-year rather than quarter-on-quarter calculation is mainly to eliminate the impact of quarterly factors and make the data more comparable. ③ Growth rate vs. increment: The increment (absolute difference) is used here instead of the growth rate, mainly because when the ROIC base is low or negative, the growth rate may have greater volatility or lose its meaning. The increment can better reflect the actual change in ROIC and avoid the impact of extreme values. ④ Factor significance: The positive value of this factor indicates that the company's return on invested capital in this period has increased compared with the same period last year, which means that the efficiency of the company's invested capital is improving. On the contrary, it means that the efficiency of invested capital has decreased. This indicator is of great significance for evaluating the sustainability of the company's profitability and the ability of management to use capital. ⑤ Application scenario: This factor can be used in stock selection strategies to screen out companies with continuously improving return on invested capital. Such companies often have stronger profit growth potential.