Factors Directory

Quantitative Trading Factors

Diluted EPS excluding extraordinary gains and losses (rolling 12 months)

Per share indicatorFundamental factorsValue Factor

factor.formula

Non-diluted EPS (TTM) =

The formula calculates the company's net profit per common share after deducting non-recurring gains and losses in the most recent 12 months.

Average total equity =

This formula calculates the average number of common shares outstanding during the reporting period, which is used to more accurately calculate earnings per share. Assuming that the share capital changes little during the reporting period, using the average of the share capital at the beginning and end of the period is a common approximation.

In the formula:

  • :

    Refers to the total net profit of a company in the past 12 consecutive months after deducting non-recurring gains and losses. Non-recurring gains and losses refer to incidental gains or losses that are not related to the company's normal business activities, such as asset disposal gains, government subsidies, non-recurring investment income, etc. The purpose of deducting non-recurring gains and losses is to more accurately reflect the profitability of the company's main business. TTM (Trailing Twelve Months) represents the concept of rolling 12 months.

  • :

    Refers to the average number of common shares outstanding during the reporting period. In order to calculate more accurate earnings per share, the average of the total share capital at the beginning and end of the reporting period is usually used. When the share capital changes frequently, the more accurate weighted average share capital should be used.

  • :

    Refers to the total number of common shares issued by a company at the beginning of the reporting period.

  • :

    Refers to the total number of common shares issued by a company at the end of the reporting period.

  • :

    Net Profit Excluding Non-recurring Items (TTM)

  • :

    Average Total Equity

  • :

    Beginning Total Equity

  • :

    Ending Total Equity

factor.explanation

Non-diluted earnings per share (TTM) is an important profitability indicator. Compared with simple earnings per share, it eliminates the impact of non-recurring gains and losses, making the profit level more comparable and sustainable. Using rolling 12-month data can smooth short-term fluctuations and better reflect the company's long-term profit trend. The higher the indicator, the stronger the company's profitability and the higher the return on investment for shareholders. When making horizontal comparisons, it is necessary to pay attention to industry differences. The profitability levels of companies in different industries may vary greatly. When making vertical comparisons, it is necessary to pay attention to the profitability of companies at different stages of development.

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