Year-on-year growth rate of total operating costs in a single quarter
factor.formula
The calculation formula for the year-on-year growth rate of total operating costs in a single quarter is:
In the formula:
- :
Represents the total operating costs for the current quarter.
- :
It represents the total operating cost of the same period last year, that is, the total operating cost four quarters before the current quarter.
factor.explanation
The year-on-year growth rate of total operating costs in a single quarter is a key indicator for measuring short-term cost changes in an enterprise and belongs to the category of growth factors. It focuses on observing the change in the total operating costs of an enterprise in a specific quarter relative to the same period last year, so as to evaluate the dynamic changes in its cost control ability and operating efficiency.
In quantitative investment, the year-on-year growth rate (or increase) is a commonly used indicator to measure the growth of an enterprise. Compared with the month-on-month growth rate, it is less affected by seasonality and more comparable; at the same time, compared with the absolute increment, the year-on-year growth rate can better reflect the growth level of an enterprise under scale changes. In addition, due to its small time granularity, single-quarter data can reflect the short-term fluctuations in the operating conditions of an enterprise more timely. Compared with the use of TTM (Trailing Twelve Months) data, single-quarter data is more sensitive to the company's latest operating conditions, but it is also more susceptible to short-term factors. Therefore, it is usually necessary to combine other factors for comprehensive analysis.
The significance of this factor is:
- Cost control evaluation: A higher year-on-year growth rate may mean rising costs, and further analysis of the reasons is needed, such as rising raw material prices, declining operating efficiency, etc.; while a lower or negative year-on-year growth rate may indicate that the company's cost control is effective and operating efficiency is improved.
- Short-term trend analysis: This factor can reflect the dynamic trend of the company's cost control in the short term and assist in judging the company's operating conditions.
- Industry comparison: This factor can be compared between different companies in the same industry to measure the relative level of the company's cost control ability.
Note: This factor needs to be used in conjunction with other financial indicators and macroeconomic data to more comprehensively evaluate the value and growth of the company.