5yr Growth Total Debt equals the five year annual geometric average growth rate of a company’s Total Debt (Short and Long term debt). It is shown as a percentage, for example 3.3%.
The geometric average gives you the growth over the period by using the product of their values (as opposed to the arithmetic average which uses their sum). We use the geometric mean because it penalises (negative growth) declined much more than the arithmetic mean does.
We Use Approximating Geometric Mean
We use a useful formula for finding the approximate geometric mean, as we already have the arithmetic mean and the standard deviation.
It is: Geometric Mean = arithmetic mean - 0.5 × (standard deviation)². It gives results very close to the correct Geometric Mean.
How to use the ratio
Available as a screening ratio: Yes
Available as an output column ratio: Yes (Look for it under the Growth heading)
How to select companies the highest growth in total debt over 5 years
To find companies with the highest growth rate in total debt over five years set the slider from 0% to 10%.
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