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QualityLTD/Cap#49

Consecutive Revenue Growth Years

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Consecutive Revenue Growth Years captures how efficiently a company converts capital into earnings.

Javier Sanz, Founder & Lead Analyst at ValueMarkers
By , Founder & Lead AnalystEditorially reviewed
Last updated: Reviewed by: Javier Sanz

Formula

Long-Term Debt / (Long-Term Debt + Equity)

Description

Shows what proportion of permanent capital comes from long-term debt versus equity. This focuses specifically on the long-term capital structure, ignoring short-term borrowings. Companies with lower ratios have more financial flexibility and lower bankruptcy risk.

Interpretation

Below 0.3 is conservative and gives the company room to borrow in times of need. Above 0.5 indicates heavy reliance on debt financing. Compare within industry, as capital-intensive sectors naturally carry more long-term debt.

Related metrics: Return on Equity (ROE), Return on Assets (ROA), Return on Invested Capital (ROIC). (Updated 2026)

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Further Reading

FAQ

How is Consecutive Revenue Growth Years calculated?+
Consecutive Revenue Growth Years uses the formula: Long-Term Debt / (Long-Term Debt + Equity). 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 10-K + 10-Q filings (segment-level disclosures).
What is a good Consecutive Revenue Growth Years value by sector?+
There is no single 'good' value for Consecutive Revenue Growth Years — context is sector-driven. compare against sector median on /screener with the Sector filter applied. The /screener exposes sector-relative percentiles for Consecutive Revenue Growth Years on every ticker, so you can compare against the sector median rather than the broad-market median.
Which investors use Consecutive Revenue Growth Years?+
Charlie Munger, Joel Greenblatt, Terry Smith cite Consecutive Revenue Growth Years as a key input to to find compounders with durable economic moats. The academic anchor is Greenblatt (2005) Magic Formula and Mauboussin (2014). ValueMarkers weights this within the Quality pillar of the VMCI score (30% of total).
What are the limitations of Consecutive Revenue Growth Years?+
Consecutive Revenue Growth Years can mislead in asset-light businesses where conventional capital ratios mislead. Pair Consecutive Revenue Growth Years 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 Consecutive Revenue Growth Years data?+
Visit any /stock/[ticker] page on ValueMarkers to see live Consecutive Revenue Growth Years data, sector percentiles, and the VMCI composite score that integrates Consecutive Revenue Growth Years with 119 other indicators across 100,000+ stocks. The free /screener exposes Consecutive Revenue Growth Years as a filterable column.

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