Slope (Linear Regression)

财务指标定义与指南。

Slope (Linear Regression)

Is the metric trending up or down over time?

Definition

Slope measures the average per-period change of a metric using ordinary least squares (OLS) linear regression. The X-axis is the array index (0, 1, 2, ...), treating each data point as an equally spaced time period.

Formula

Where is the period index (0, 1, 2, ...) and is the metric value.

Interpretation

The slope is expressed in the same unit as the metric per year (%/yr for ratios, absolute/yr for amounts).

Signal Meaning
Slope > 0 Metric is rising over time
Slope < 0 Metric is declining over time
Slope ≈ 0 No clear trend

Caveats:

  • Slope only captures linear trends — a parabolic trajectory (rise then fall) may have slope ≈ 0
  • Small samples (3-5 years) make slopes unreliable — always check R² alongside
  • Missing years in the data will shift indices and distort the slope

In Finsco

Used in all audit commands as part of the summary statistics table. The slope is always paired with R² to indicate trend reliability.

Command Metrics with Slope
audit returns ROE, ROTE, ROA, ROIC
audit moat Gross Margin, ROIC
audit earning-quality Accruals, Cash Conv, FCF Conv
audit debt-discipline D/E, D/EBITDA, Coverage, Net D/E
audit capital-flow FCF Conv, CapEx Int, Payout/FCF

Related Metrics