Question
P2. Growth-Sales/Earning X(t) is a time series. Growth function is to capture relative change(increase or decrease) of X(t) where t means this quarter and t-1
P2. Growth-Sales/Earning
X(t)is a time series. Growth function is to capture relative change(increase or decrease) ofX(t)wheretmeans this quarter andt-1mean last quarter.
Sales is the amount of money that a computer actually receives during a specific period, including discounts and deductions for returned merchandise. Sales are positive number in most cases with few exceptions.
Earnings are the amount of profit that a company produces during a specific period, which is usually defined as a quarter (three calendar months) or a year. Earnings can be positive and negative values.
Considering above description, please improve below formula of Sales/Earning Growth to processdirtydata values.
Earnings Growth Formula: { Earnings(t)/Earnings(t-1) }-1
Sales Growth Formula: { Sales(t)/ Sales(t-1) }-1
i.e. taking ratios between current quarter's value and last quarter's value and subtract by one
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