Net Income Growth 5 Year CAGR
Returns the five-year Compound Annual Growth Rate (CAGR) of net income for a company. This measures the long-term growth in the company's bottom-line profits.
Supported Symbol Formats
| Type | Format | Example |
|---|---|---|
| US Stocks | SYMBOL | AAPL, MSFT |
Formula
CAGR = (Ending Net Income / Beginning Net Income)^(1/5) - 1
Interpretation
| CAGR Level | Interpretation |
|---|---|
| > 15% | Excellent profit growth |
| 10-15% | Strong growth |
| 5-10% | Moderate growth |
| 0-5% | Slow growth |
| < 0% | Declining profits |
Notes
- Returns value as a decimal (0.15 = 15%)
- Net income includes all income statement items
- More volatile than revenue growth due to expense fluctuations
Examples
=NetIncomeGrowthFiveYearCAGR("AAPL")=NetIncomeGrowthFiveYearCAGR("MSFT")=NetIncomeGrowthFiveYearCAGR("GOOGL")Symbol from cell reference
=NetIncomeGrowthFiveYearCAGR("MSFT")*100When to Use
- Evaluate long-term profitability growth
- Earnings quality analysis
- Value investing research
- Compare profit growth across companies
When NOT to Use
Common Issues & FAQ
Q: Why is the value less than 1? A: CAGR is returned as a decimal. Multiply by 100 to get percentage (e.g., 0.15 = 15%).
Q: What if net income was negative? A: If either starting or ending net income is negative, CAGR calculation may return N/A or be unreliable.
Q: Why is net income growth different from EPS growth? A: Net income growth shows total profit growth. EPS growth also factors in share buybacks/dilution, so EPS growth can exceed net income growth if shares are being repurchased.
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