TTM return on tangible capital growth rate
factor.formula
[(Current reporting period TTM ROCE - Previous reporting period TTM ROCE) / |Previous reporting period TTM ROCE|]
This formula calculates the quarter-over-quarter growth rate of the TTM ROIC of the most recent reporting period (t) relative to the TTM ROIC of the previous reporting period (t-1). The denominator uses the absolute value of the TTM ROIC of the previous reporting period to avoid unstable results due to a negative denominator or a denominator close to zero.
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The TTM Return on Tangible Capital (RTT) for the current reporting period (t) represents the cumulative return on tangible capital over the last 12 months.
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TTM return on tangible capital for the previous reporting period (t-1) represents the cumulative return on tangible capital for the previous 12 months.
factor.explanation
This factor measures the change in the company's return on tangible capital between consecutive reporting periods and is a sensitive momentum indicator. If the value is positive, it indicates that the company's return on tangible capital is increasing, reflecting that the company's operating efficiency or profitability may be improving; conversely, if the value is negative, it may mean that the company's operating efficiency or profitability is declining. In addition, since the absolute value is used as the denominator, this indicator is more sensitive to the situation where the return rate of the previous period is close to zero, and needs to be combined with other factors for comprehensive analysis.