Gross Profitability on Total Assets
factor.formula
Gross profit margin of total assets:
Operating profit (TTM):
Average total assets:
in:
- :
It represents the operating gross profit for the last 12 months (rolling), which is the operating income minus the operating costs.
- :
Represents the operating income for the last twelve months (rolling).
- :
Represents the operating costs for the last 12 months (rolling).
- :
It represents the arithmetic mean of the total assets at the beginning of the period and the total assets at the end of the period, and is used to measure the average asset size during the reporting period.
- :
Represents the company's total assets at the beginning of the reporting period.
- :
Represents the company's total assets at the end of the reporting period.
factor.explanation
Gross Profitability on Total Assets is an indicator that measures the efficiency of a company in using its total assets to create gross profit. It compares a company's operating gross profit with its average total assets. The higher the value of this indicator, the stronger the company's ability to use its assets to create profits and the higher the efficiency of asset operation. This indicator can be used to compare the profitability and efficiency of the same company across time or to compare different companies in the same industry. In value investing, a high gross profit margin is generally considered to be a reflection of a company's strong competitive advantage and pricing power, so the gross profit margin on total assets can be used as one of the reference indicators for value stock selection.