Sales Growth Consistency is a very simple equation and does not contain any ratios. The purpose of Sales Growth Consistency is simply to track the number of years that the sales of the company have grown.
The equation is an IF-THEN-ELSE statement. If you do not know what this is, then I will explain: the meaning of this statement is that IF A occurs, THEN you will do B, otherwise (ELSE) you will do C. Otherwise, no explanation is necessary. (In case you did not catch it, this paragraph is an IF-THEN-ELSE statement…)
So the equation is:
IF [Sales This Year > Sales Last Year] THEN [Sales Growth Consistency = Sales Growth Consistency Last Year + 1]
ELSE [Sales Growth Consistency = 0]
So a company with a Sales Growth Consistency of 7, would have had 7 years of consistent growth in the volume of sales.
Adversely, a company with a Sales Growth Consistency of 0 did not grow this last year.
…Your business THRIVES on a solid FOUNDATION!!!