# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Net Income Growth

This figure represents the annualized rate of net-income growth over the trailing one-year period for the stocks held by a fund.

Net-income growth gives a good picture of the rate at which companies have grown their profits. All things being equal, stocks with higher net-income growth rates are generally more desirable than those with slower net-income growth rates.

Morningstar aggregates net-income growth figures for mutual funds using a median methodology, whereby domestic stocks are ordered from highest to lowest based on their net-income growth rates. One adds up the asset weighting of each holding until the total is equal to or greater than half of the total weighting of all domestic stocks in the fund. The net-income growth rate for that stock is then used to represent the net-income growth rate of the total portfolio.

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