Factors Directory

Quantitative Trading Factors

Year-on-year growth rate of net profit in a single quarter

Growth Factors

factor.formula

Year-on-year growth rate of net profit in a single quarter:

Formula Description:

  • :

    The net profit attributable to the parent company's shareholders in the most recent quarter (quarter t). This data is usually taken from the income statement of the company's financial report, representing the company's final profit after deducting all costs and taxes in the most recent quarter.

  • :

    Net profit attributable to shareholders of the parent company in the same quarter of the previous year (quarter t-4). For year-on-year comparison, we take the net profit of the same quarter of the same period last year to eliminate the impact of seasonal factors.

  • :

    The absolute value function is used to ensure that the denominator is a positive number. When the net profit in the same period of the previous year is negative, its absolute value is taken to prevent abnormal calculation.

factor.explanation

① The growth factor aims to quantify the company's business expansion and profit growth potential in a specific time period. This factor focuses on the growth of the company's profitability in the short term and belongs to the profitability and short-term growth factor. ② The factor is calculated using a single quarter year-on-year method. The single quarter is selected to reflect the company's latest operating conditions and profit changes in a more timely manner; the year-on-year is used to eliminate the impact of seasonal factors and make data in different time periods more comparable. ③ The advantage of year-on-year growth rate is that it can more directly reflect the company's changes relative to the same period last year, more accurately assess the company's true profitability growth, and reduce the fluctuation interference in the time series. Compared with the increment, the growth rate indicator is more suitable for comparing companies of different sizes, and the increment is more susceptible to the impact of historical bases. ④ This factor is calculated using the net profit attributable to the parent company's shareholders. The reason is that the net profit attributable to the parent company can better reflect the company's actual profitability and exclude the impact of minority shareholders' interests. ⑤ This factor is applicable to the evaluation of all industries and companies, but it is necessary to conduct in-depth analysis in combination with industry characteristics and company specific conditions when analyzing. For example, cyclical industries or companies in a rapid development stage may have higher year-on-year growth rates.

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