Rolling twelve months cost-to-profit ratio
factor.formula
Cost-to-profit ratio (TTM) =
Among them, total cost (TTM) =
All parameters in the formula are rolling twelve months (TTM) data:
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The total net profit attributable to the parent company's shareholders in the last 12 months reflects the company's ultimate profitability over a period of time.
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The total cost and expenses in the last 12 months include operating costs, sales expenses, administrative expenses and financial expenses. It reflects the sum of various cost expenditures of the enterprise in its production and operation activities.
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The total operating costs for the last 12 months refer to the direct costs incurred by the company in selling goods or providing services.
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The total sales expenses in the last 12 months refer to the expenses incurred by the company in the process of selling products or providing services, such as advertising fees, sales staff salaries, etc.
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The total administrative expenses in the last 12 months refer to the expenses incurred by an enterprise for organizing and managing production and operation activities, such as management staff salaries, office expenses, etc.
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The total financial expenses in the last 12 months refer to the expenses incurred by the enterprise in raising funds, such as interest expenses, exchange losses, etc.
factor.explanation
The cost-to-profit ratio (TTM) reflects the net profit that a company can generate for each unit of cost invested in the past 12 months, and intuitively demonstrates the company's ability to use cost to create profits. The higher the value of this indicator, the more advantages the company has in cost control, the stronger its profitability, and thus the higher its operating efficiency. Investors and analysts can use this indicator to evaluate the profitability of a company and compare it with other companies in the same industry to understand its competitive position. In addition, the cost-to-profit ratio (TTM) can reflect the stability and sustainability of a company's profitability over a period of time, so it is an important fundamental factor in quantitative investment.