Revenue growth spillover
factor.formula
factor.explanation
This factor examines the relationship between a company's revenue growth and inventory growth. A positive value indicates that the company's revenue growth is faster than its inventory growth, which generally means that the company has good sales, high inventory turnover efficiency, good profitability and operating efficiency. A negative value may indicate that the company's revenue growth is weak or that there is a serious inventory backlog, which may indicate the risk of slower sales growth in the future or the need for price cuts to clear inventory. Therefore, high revenue growth spillover indicates that the company has stronger revenue quality and operating efficiency, and is a valuable reference indicator in the investment portfolio. This factor can be used in combination with other growth factors or profitability factors to enhance the effectiveness of stock selection.