Consecutive profitable years (Profit streak)
How many filed years in a row the company reported a profit.
Graham's defensive criteria include some earnings in each of the last ten years. This is that test.
How it is computed here
Count of consecutive filed years with positive net income
Computed across several filed fiscal years. Filed under quality. Higher is the stronger reading, other things equal.
No published threshold exists for this figure, so this page prints none. Read it against the company's own history and its peers instead.
When it misleads
- Capped by the filed history on record.
- Reported profit, not cash. A run of profitable years with no cash behind them is a warning, not a comfort.
Questions
How is consecutive profitable years calculated?
Count of consecutive filed years with positive net income. Computed across several filed fiscal years.
What does consecutive profitable years tell a value investor?
Graham's defensive criteria include some earnings in each of the last ten years. This is that test.
When does consecutive profitable years mislead?
Capped by the filed history on record. Reported profit, not cash. A run of profitable years with no cash behind them is a warning, not a comfort.