The percentage year-on-year change in quarterly net income. The calculation of quarterly year-on-year change is the most recent quarter's net income minus the year-ago quarter's net income, divided by the year-ago quarter's net income. The resulting figure is then multiplied by 100.
Benefit
If this figure is positive, the company’s earnings are growing; if it’s negative, earnings are generally declining. However, it’s best to look at the Net Income % Change for all four of the most recent quarters. Sometimes a one-time charge can depress earnings for a single quarter, even though the company’s earnings are generally rising; in other cases, earnings may have only started slipping
Origin
This information is found in the quarterly income statements for the time period. This information is updated weekly.
For the Pros
Because of normal seasonal fluctuations in a company's net income throughout a fiscal year, it is usually best to compare quarterly figures with the same quarter one year ago, rather than with the quarter that immediately precedes it.