The year-on-year growth rate of net profit margin in a single quarter is an important indicator to measure the short-term changes in a company's profitability. It is based on the net profit margin data of a single quarter, and reflects the growth of a company's profitability by comparing the net profit margin of this quarter with that of the same period last year. Using the year-on-year growth rate instead of the quarter-on-quarter growth rate can eliminate the interference of seasonal factors and make data in different time periods more comparable. Compared with the net profit growth rate, the net profit margin growth rate can better reflect the changes in the company's operating efficiency and cost control capabilities. The higher the value of this indicator, the faster the company's profitability has increased year-on-year, and vice versa, it indicates that there may be a risk of decline or stagnation in profitability. In quantitative investment, this indicator can be used as an important basis for screening companies with good profit growth. This factor is particularly suitable for short-term profitability analysis, and can be used in combination with other growth factors, profitability factors, etc. to build a more effective quantitative investment strategy. It should be noted that this indicator is highly sensitive to extreme values, and outliers should be removed or adjusted when conducting factor analysis and strategy construction.