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TakeStock and minimum growth requirements
Rank: Advanced Member
Posts: 105
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Looking at the web-based TakeStock, it appears that no matter what stock I look at TakeStock's quality requirement for minimum growth rate is the same. I bring up a company and click on "Growth" (in the vertical blue toolbar to the left where it lists Home, Quality, Growth, Efficiency ...). I see the following notation for every company I look at ...
"The minimum sales or earnings growth rate for a company of this size should be about 7.0%; 14.9% is desirable."
For example, I get that same message on QSII ($157.2 million in Sales), FAST (1.8 billion in Sales) and SBUX ($9.4 billion in Sales).
In NAIC TakeStock 4, the message is different for those three companies, indicating higher minimum required growth for companies with smaller annual sales.
-Jim Thomas
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Rank: Advanced Member
Posts: 126
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Hi Jim,
Thanks for letting us know about that discrepancy. The actual calculations used to generate the overall Quality Index were not affected by this issue, only the text display was in error. This error has been corrected. Please let us know anytime if you note other issues or have suggestions, thanks!
Dave
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Rank: Advanced Member
Posts: 82
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Jim:
At 02:17 PM 2/12/2008, you wrote:
From the The Toolshed forum at
StockCentral.com, Jim Thomas writes:
Looking at the web-based TakeStock, it appears that no matter what stock
I look at TakeStock's quality requirement for minimum growth rate is the
same. I bring up a company and click on "Growth" (in the
vertical blue toolbar to the left where it lists Home, Quality, Growth,
Efficiency ...). I see the following notation for every company I
look at ...
"The minimum sales or earnings growth rate for a company of this
size should be about 7.0%; 14.9% is desirable."
For example, I get that same message on QSII ($157.2 million in Sales),
FAST (1.8 billion in Sales) and SBUX ($9.4 billion in Sales).
In NAIC TakeStock 4, the message is different for those three companies,
indicating higher minimum required growth for companies with small annual
sales.
The algorithm for determining the minimum growth rate for sales
based on the magnitude of company revenues has 7% as the
minimum, no matter how much bigger a company grows. It is
only at the small end of the company size that it will increase
above 7%. That algorithm produces something like this old
illustration:
![[]](cid:.0)
ET |
Ellis Traub |
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Rank: Advanced Member
Posts: 80
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Jim,
You might enjoy a look at the following two links:
http://naicspace.org/PDF/Toolkit/DesiredGrowthCalculator.pdf
http://naicspace.org/Bin/DG.exe
The .exe is safe or if you would rather that I send you it renamed as DG.txt I will do so. Also if you would like the slope and intercept for the various breakpoints just ask.
Ken |
Ken |
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Rank: Advanced Member
Posts: 105
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A very belated "thank you" to Dave for getting this error fixed!
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TakeStock and minimum growth requirements
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