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QualityWC/Assets#51

Dividend Growth Streak

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Dividend Growth Streak 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

(Current Assets - Current Liabilities) / Total Assets

Description

Measures the proportion of total assets funded by net working capital. This is one of the five components of the Altman Z-Score. It reflects both liquidity and the relative size of the company's short-term financial cushion.

Interpretation

Above 0.2 is generally healthy. Below 0.1 may indicate tight liquidity. Negative values mean current liabilities exceed current assets, which is a warning sign for most industries (though common in some subscription-based businesses).

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

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Further Reading

FAQ

How is Dividend Growth Streak calculated?+
Dividend Growth Streak uses the formula: (Current Assets - Current Liabilities) / Total Assets. 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 Dividend Growth Streak value by sector?+
There is no single 'good' value for Dividend Growth Streak — context is sector-driven. compare against sector median on /screener with the Sector filter applied. The /screener exposes sector-relative percentiles for Dividend Growth Streak on every ticker, so you can compare against the sector median rather than the broad-market median.
Which investors use Dividend Growth Streak?+
Charlie Munger, Joel Greenblatt, Terry Smith cite Dividend Growth Streak 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 Dividend Growth Streak?+
Dividend Growth Streak can mislead in asset-light businesses where conventional capital ratios mislead. Pair Dividend Growth Streak 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 Dividend Growth Streak data?+
Visit any /stock/[ticker] page on ValueMarkers to see live Dividend Growth Streak data, sector percentiles, and the VMCI composite score that integrates Dividend Growth Streak with 119 other indicators across 100,000+ stocks. The free /screener exposes Dividend Growth Streak as a filterable column.

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