Year-on-year growth rate of cost-profit ratio in a single quarter
factor.formula
Year-on-year growth rate of cost-profit ratio in a single quarter:
Formula Description:
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The cost-to-profit ratio for the most recent quarter refers to the cost-to-profit ratio calculated for the company's most recent quarterly reporting period. This indicator reflects the cost-to-profit ratio that the company can achieve per unit of revenue in the current period. The higher the ratio, the stronger the company's profitability. The calculation of this value usually involves revenue, cost and expense data.
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The cost-to-profit ratio for a single quarter in the same period of the previous year refers to the cost-to-profit ratio for the same quarter as the most recent reporting period but in the previous year. Using the data from the same period of the previous year for comparison can effectively eliminate the impact of seasonal factors on the cost-to-profit ratio, thereby more accurately reflecting the real changes in the company's operating efficiency and profitability.
factor.explanation
This factor is one of the key indicators to measure the growth of a company's profitability. By calculating the year-on-year growth rate of the cost-to-profit ratio in a single quarter, we can gain insight into the changes in the company's efficiency in cost control and expense management in the short term, as well as the changing trend of profitability. Compared with month-on-month growth, year-on-year growth can effectively eliminate the impact of seasonal factors and better reflect the long-term trend of the company's operations. The positive and negative values of this indicator can reveal the improvement (positive value) or deterioration (negative value) trend of the company's profitability. In addition, using the absolute value as the denominator can avoid calculation anomalies caused by a negative or zero denominator. In quantitative investment, such growth factors can be used to construct stock selection strategies to screen out companies with growth potential in profitability.