Year-on-year change rate of gross profit margin in a single quarter
factor.formula
Year-on-year change in gross profit margin for a single quarter:
in:
- :
Indicates the gross profit margin for the most recent reporting period.
- :
Indicates the gross profit margin for a single quarter in the same period of the previous year. Where q refers to the current quarter and q-4 refers to the same quarter of the previous year.
- :
Indicates the absolute value of the gross profit margin for a single quarter in the same period of the previous year. Using the absolute value can avoid the situation where the denominator is 0 and make the calculation of the rate of change more robust. When the gross profit margin in the same period of the previous year is negative, using the absolute value can also more clearly reflect the relative change in the gross profit margin.
factor.explanation
This factor calculates the change ratio of the company's gross profit margin in the most recent reporting period to the gross profit margin in the same quarter of the previous year. This factor is used to measure the growth of the company's gross profit margin in the same quarter of consecutive years. A positive value indicates a year-on-year increase in gross profit margin, reflecting increased profitability; a negative value indicates a year-on-year decrease in gross profit margin, reflecting weakened profitability. The larger the value of this factor, the higher the growth of the company's gross profit margin and the stronger profitability it has in the industry competition.