Quarterly abnormal gross profit growth rate
factor.formula
Quarterly abnormal gross profit growth rate =
Where: Cash sales growth rate =
The factor calculation formula is designed to measure the deviation of the current gross profit from its normal growth level and is standardized by total assets to eliminate scale effects.
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Represents the gross profit for the current period (quarter).
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Represents the gross profit for the same period last year (quarter).
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It expresses the growth rate of cash sales revenue in the current period (quarter) relative to the same period last year (quarter), used as a multiplier to measure normal growth.
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Represents the cash received from the sale of goods and provision of services in the current period (quarter).
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Represents cash received from sales of goods and rendering of services in the same period last year (quarter).
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Represents total assets at the end of the period (quarter) and is used to normalize the size of gross profit growth.
factor.explanation
The quarterly abnormal gross profit growth rate reflects the deviation of the company's actual gross profit growth from expectations (based on sales growth). A significant positive value indicates that the company's gross profit margin may be improving, which is generally regarded as a positive signal. Possible driving factors include:
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Increased product competitiveness: The company's products or services have higher market acceptance and can be sold at higher prices, thereby increasing gross profit margins.
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Improved cost control effectiveness: The company has reduced unit product costs and increased gross profit margins by optimizing production processes, supply chain management or other cost control measures.
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Product structure optimization: The company has sold more high-gross-profit products, thereby increasing overall gross profit margins.
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Adjustments to other business strategies: For example, adjustments to promotional strategies or optimization of sales channels will affect gross profit margins.
On the contrary, negative values may indicate the risk of deterioration of gross profit margins.