Quality of Earnings & Growth - System Factor Information
All earnings are not equal, profits can be grown in a number of ways. This factor complements the PEG Factor by measuring its quality.
Quality of Earnings & Growth is calculated using:
- Organic Business Growth - Indicates how much of the company's profit growth is due to expanded operations and increased business versus reduced expenses versus earnings from accounting techniques.
- Internal Rate of Return - Measures how well a company can use its resources to generate profits, and how effectively it can compound its returns.
Quality of Earnings & Growth is included in the calculation of:
- Total Score - The final number. The broadest and highest level rating for a stock.