Net operating asset profit margin
factor.formula
Net Operating Asset Profit Margin:
Average net operating assets:
In the formula:
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Refers to the total operating profit of the past 12 months (rolling), reflecting the total profit generated by the company's operating activities. Using TTM data can more accurately reflect the company's latest profitability.
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Refers to the arithmetic average of net operating assets at the beginning and end of the period, used to measure the average level of net operating assets used by the company during the reporting period. Net operating assets are equal to total assets minus non-operating assets (such as financial assets) and liabilities (such as interest-bearing debt).
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Refers to net operating assets at the beginning of the reporting period.
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Refers to net operating assets at the end of the reporting period.
factor.explanation
Net operating asset return rate is an indicator that measures a company's ability to generate profits using its net operating assets. It compares a company's operating profit with its average net operating assets, reflecting the efficiency of the company's use of core business assets to generate profits without considering non-operating assets and liabilities. This indicator is an important profitability factor proxy variable in the Fama-French five-factor model and is widely used in quantitative investment strategies. A higher net operating asset return rate generally means stronger profitability and higher asset operation efficiency. Compared with using net assets, using net operating assets can more clearly reflect the profitability of a company's main business.