How many years in a row the company has grown revenue. Above 5 is strong, above 10 is exceptional. Long streaks indicate consistent demand and management execution. A break in a long streak deserves careful investigation.
Formula
Description
Counts how many years in a row the company has grown revenue. Long streaks indicate consistent demand for the company's products and management's ability to execute. Revenue growth streaks are harder to fake than earnings streaks because revenue recognition, while flexible, is more constrained.
Interpretation
Above 5 consecutive years is strong. Above 10 is exceptional and suggests a durable competitive advantage. A break in a long streak deserves careful investigation to determine whether it is temporary or structural.
Related Risk Indicators
Whether gross margins are improving or declining over five years. A positive trend means the company is gaining pricing power or reducing costs. Negative trends in a mature business are a warning sign.
Whether bottom-line profitability is improving or declining over five years. A positive trend indicates the business is becoming more profitable. The most durable improvement comes from expanding gross margins rather than cost-cutting.
The lowest ROIC recorded over five years. A company with a high minimum ROIC (above 10%) maintains strong returns even in bad years, indicating a genuinely strong business with a durable competitive advantage.
Measures the accrual component of earnings relative to total assets. When cash flow exceeds reported earnings, the company has high-quality earnings. Large accruals relative to assets are a red flag for potential manipulation.
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