Total assets operating profit margin (TTM)
factor.formula
Total assets operating profit margin (TTM):
Average total assets:
in:
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The operating profit for the last 12 months (Trailing Twelve Months) is obtained by adding up the operating profits for the last four quarters. It reflects the company's core operating profitability in the past year.
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Average total assets is the arithmetic average of the total assets at the beginning of the period and the total assets at the end of the period. The average total assets are used here to eliminate the impact of asset changes on the indicator and more accurately evaluate the profitability of assets.
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Beginning total assets refers to the total assets at the beginning of the reporting period.
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Total assets at the end of the period refer to the total assets at the end of the reporting period.
factor.explanation
The total asset operating profit margin (TTM) is an indicator that measures a company's ability to generate operating profit using all its assets. The numerator of this indicator is the operating profit of the most recent 12 months, and the denominator is the average total assets. Using rolling 12-month data can smooth seasonal effects and reflect the company's latest profitability more promptly. The higher the indicator is, the more efficient the company is in using its assets to generate profits, the stronger its asset return ability is, and the higher the company's operating efficiency is. Compared with the return on total assets (ROA) calculated using net profit, the total asset operating profit margin pays more attention to the profitability of the company's core operating business and better reflects the quality of the company's operations. In quantitative analysis, this factor can be used to screen companies with high operating efficiency and strong profitability.