Year-on-period ratio (the rate of comparison over the same period) is a method of comparison that measures how two or more indicators have changed over the same period of time. It can be used to evaluate the relative strength and weakness of various indicators, analyze the correlation between indicators, and observe the trend of data changes. The method of calculating the ratio for the same period is as follows:
1.Identify metrics to compare to: First, identify the metrics that need to be compared. These metrics can be financial data, performance indicators, market share, etc., and they should be comparable.
2.Collect data: Collects data for each comparison metric over the same time period. This data can be obtained from the company's financial statements, market research reports, or other reliable**.
3.Calculate the ratio: Calculate the ratio of each metric based on the collected data. The ratio can be calculated using a simple division or a complex mathematical formula. For example, by calculating the ratio of sales revenue to cost of sales, you can get the gross profit margin;Calculate the ratio of net profit to operating income to obtain the net profit margin.
4.Results: Analysis and interpretation of the calculated contemporaneous ratios. Compare the year-on-period ratio of each indicator, identify strengths and weaknesses, analyze the causes, and make suggestions for improvement.
5.Track dynamics: Regularly collect and calculate the ratio of the same period, and track the changes of various indicators. This helps to identify problems in time, adjust strategies, and improve the competitiveness of enterprises.