Operating income growth rate = operating income growth this year/total operating income last year × 100%.
In which: the increase of operating income this year = the total operating income this year and the total operating income last year.
The growth rate of operating income is greater than zero, indicating that the operating income of enterprises has increased this year. The higher the index value, the faster the growth rate of business income and the better the market prospect of the enterprise.
Extended data:
Measure the product life cycle of the company.
The growth rate of operating income can be used to measure a company's product life cycle and judge its development stage. Generally speaking, if the growth rate of operating income exceeds 10%, it means that the company's products are in the growth stage and will continue to maintain a good growth momentum, and it has not yet faced the risk of product upgrading, and it belongs to a growth company. If the growth rate of operating income is between 5%- 10%, it means that the company's products have entered a stable period and are about to enter a recession, so it is necessary to start developing new products. If the ratio is less than 5%, it means that the company's products have entered a recession, it is difficult to maintain market share, and business profits have begun to decline. If new products are not developed, they will enter decline.
Judge the business development of the enterprise.
The comparative analysis of operating income growth rate and accounts receivable growth rate can show the company's sales growth rate and can be used to judge the development of enterprise business.
It is generally believed that when the growth rate of operating income is lower than -30%, it means that the company's business has fallen sharply and an early warning signal has been generated. In addition, when the growth rate of operating income is less than the growth rate of accounts receivable, or even the growth rate of operating income is negative, the company is likely to manipulate profits and needs to be strictly guarded. When judging, it is necessary to make a comprehensive analysis according to the proportion of accounts receivable to operating income.
References:
? Baidu encyclopedia-operating income growth rate