RiskEarn Streak#108
Capital Expenditure to Revenue captures the financial stress or solvency profile of the business.
By Javier Sanz, Founder & Lead AnalystEditorially reviewed
Last updated: Reviewed by: Javier Sanz
Formula
Number of consecutive years with positive net income
Description
Counts how many consecutive years the company has reported positive earnings. Benjamin Graham required a company to show positive earnings in every year of the past decade. A long positive earnings streak indicates business resilience and management competence.
Interpretation
Above 8 consecutive years is strong. Above 15 is exceptional. Companies with unbroken earnings streaks across recessions likely have durable business models. A single year of losses after a long streak deserves investigation, as it may represent a cyclical dip or a structural shift.
Related metrics: Beta (Market Sensitivity), 52-Week Price Volatility. (Updated 2026)
Further Reading
- SEC EDGAR primary filings on Capital Expenditure to Revenue (CapEx/Revenue)- Primary source filings used to calculate Capital Expenditure to Revenue (CapEx/Revenue).
FAQ
How is Capital Expenditure to Revenue calculated?+
Capital Expenditure to Revenue uses the formula: Number of consecutive years with positive net income. compare against sector median on /screener with the Sector filter applied. ValueMarkers refreshes the calculation within 24 hours of each new SEC filing using SEC EDGAR balance-sheet + cash-flow statements.
What is a good Capital Expenditure to Revenue value by sector?+
There is no single 'good' value for Capital Expenditure to Revenue — context is sector-driven. compare against sector median on /screener with the Sector filter applied. The /screener exposes sector-relative percentiles for Capital Expenditure to Revenue on every ticker, so you can compare against the sector median rather than the broad-market median.
Which investors use Capital Expenditure to Revenue?+
Howard Marks, Seth Klarman, Bill Ackman in distressed scenarios cite Capital Expenditure to Revenue as a key input to to flag solvency stress and avoid permanent capital loss. The academic anchor is Altman (1968) Z-Score and Piotroski (2000) F-Score. ValueMarkers weights this within the Risk pillar of the VMCI score (8% of total).
What are the limitations of Capital Expenditure to Revenue?+
Capital Expenditure to Revenue can mislead in asset-heavy industries where leverage ratios understate true risk. Pair Capital Expenditure to Revenue with at least two cross-checks from other VMCI pillars — for example, free cash flow trend, balance-sheet quality, and earnings consistency — before drawing a single-metric conclusion.
Where can I see live Capital Expenditure to Revenue data?+
Visit any /stock/[ticker] page on ValueMarkers to see live Capital Expenditure to Revenue data, sector percentiles, and the VMCI composite score that integrates Capital Expenditure to Revenue with 119 other indicators across 100,000+ stocks. The free /screener exposes Capital Expenditure to Revenue as a filterable column.
Related Risk Indicators
Beta (Market Sensitivity)GM Trend
Beta is the metric used to the financial stress or solvency profile of the business.
52-Week Price VolatilityNM Trend
52-Week Price Volatility measures the financial stress or solvency profile of the business.
Maximum Drawdown 1Y (Max Drawdown)ROIC Min 5Y
Maximum Drawdown 1Y expresses the financial stress or solvency profile of the business.
Free Cash Flow to Enterprise (FCF to Firm)EQ
Free Cash Flow to Enterprise captures the financial stress or solvency profile of the business.
Explore More
Popular Stocks
- Apple (AAPL)Apple value analysis · VMCI score, DCF, MOS
- Microsoft (MSFT)Microsoft value analysis · 120 fundamental indicators
- Alphabet (GOOGL)Alphabet/Google value analysis
- Amazon (AMZN)Amazon intrinsic value and growth profile
- NVIDIA (NVDA)NVIDIA quality, growth, and risk analysis
- Meta Platforms (META)Meta value analysis · VMCI breakdown
- Berkshire Hathaway (BRK.B)Berkshire quality + integrity breakdown
- Johnson & Johnson (JNJ)JNJ dividend quality analysis
- Visa (V)Visa moat, growth, and valuation
- JPMorgan Chase (JPM)JPM financials quality analysis
- Coca-Cola (KO)KO dividend king analysis
- Procter & Gamble (PG)PG dividend king fundamentals
Browse ETFs
- All ETFsTop 100 ETFs by AUM with VMCI-Composite scores
- SPY · S&P 500Broad-market ETF holdings analysis
- VOO · Vanguard S&P 500Low-cost S&P 500 exposure
- QQQ · Nasdaq 100Large-cap growth ETF analysis
- VTI · Total US MarketTotal US equity market ETF
- SCHD · Dividend ETFDividend-focused ETF holdings breakdown
- VYM · High Dividend YieldHigh-yield US dividend ETF
- DGRO · Dividend GrowthDividend growth ETF analysis
- XLK · Tech SectorTechnology sector ETF holdings
- VNQ · Real EstateUS REIT-focused ETF analysis
- GLD · GoldPhysical-gold-backed ETF
- ARKK · Disruptive InnovationThematic growth ETF holdings
Dividend Stocks
- All Dividend Stocks500+ dividend payers with safety scoring
- Dividend Kings50+ years of consecutive dividend growth
- Dividend Aristocrats25+ years of growth · S&P 500 members
- Dividend Contenders10-24 years of dividend growth
- Dividend Challengers5-9 years of dividend growth
- Safe-Yield DividendsQuality > 70 · low-risk dividend payers
- High-Yield DividendsStocks yielding 5%+ with payout health checks
- Dividend Growth10%+ five-year dividend CAGR
- Foreign DividendsNon-US dividend ADRs with VMCI scores
- Coca-Cola (KO) DividendKO dividend deep dive · DRIP projection
- JNJ Dividend AnalysisJohnson & Johnson dividend safety profile
- Procter & Gamble (PG) DividendPG dividend king status
Compare Competitors
- All ComparisonsCompare 67+ stock analysis tools
- vs GuruFocusDetailed feature and pricing comparison
- vs TIKRSide-by-side platform comparison
- vs MorningstarCompare analysis capabilities
- vs FinvizScreener comparison and review
- vs Seeking AlphaResearch platform comparison
- vs Simply Wall StVisual analysis comparison
- vs Yahoo FinanceFree tool comparison
- vs ZacksEarnings rank vs fundamental analysis
- vs StockopediaStockRanks vs DCF comparison
- vs Stock RoverPortfolio analytics comparison
- vs KoyfinTerminal-style tool comparison
- vs TradingViewCharting platform comparison
- vs Alpha SpreadValuation tool comparison
- vs WisesheetsExcel/Sheets add-in comparison
- vs MacroaxisData portal vs analysis platform
- vs Old School ValueGraham-style analysis comparison
- vs TIKR TerminalData terminal vs screener comparison
Learn
Investing Tools
- Stock ScreenerScreen 85,000+ stocks by 120 indicators
- VM Score LeaderboardTop stocks ranked daily by VMCI
- Guru StrategiesApply Buffett, Graham, Greenblatt strategies
- DCF CalculatorCalculate intrinsic value, free
- Global MarketsMacro overview across 73 exchanges
- Stock CompareSide-by-side company comparison
Browse Stocks
- Stock Analysis HubBrowse by sector, exchange, or country
- Technology StocksTop tech stocks by intrinsic value
- Healthcare StocksTop healthcare stocks by VMCI
- Financial StocksTop financial stocks by VMCI
- Energy StocksTop energy stocks by fundamentals
- Real Estate StocksTop REIT and property stocks
- NYSE StocksBest-valued stocks on NYSE
- NASDAQ StocksTop NASDAQ stocks by VM Score
- LSE StocksTop London Stock Exchange stocks
- US StocksBest US stocks by fundamentals
- UK StocksBest UK stocks by fundamentals
- Japan StocksTop Japanese stocks by value