Start by scanning the numbers on the chart. Do they measure up to your expectations for growth? To some degree, this will depend on your personal goals. If you are an aggressive long-term investor, you will want to see higher growth rates than would be the case if your primary goals were income/safety/capital preservation. Note, though, that all equity investors should look for growth rates that are at least as strong as growth of Real GDP and Inflation.

Next, do a "vertical scan" of each chart column. The ideal scenario is for EPS growth to be strongest. If EPS is growing more rapidly than Dividends, then there's a good chance the Dividend will also grow. And if EPS is growing more quickly than Sales, that suggests that costs are being effectively controlled. But watch out for too much of a good thing. Cost control will carry a company just so far. Sooner or later, even the most cost-efficient companies will need to achieve healthy rates of sales growth if they are to prosper on a long-term basis.

Finally, do a "horizontal" scan of each chart row. Ideally, you'd like to see a pattern of accelerating growth (i.e. the three-year rate is higher than the five-year rate, and a one-year growth rate that's stronger than the three-year rate). But there are two important subtleties you need to consider when you examine growth rates this way.

1. One-year growth rates can be very susceptible to unusual developments, for better or worse. For example, a company recovering from an especially poor year will show an unusually strong set of one-year growth rates. Don't expect such rates to persist in the future. Conversely, a company that is experiencing a temporary setback can have a set of one-year rates that does not truly reflect its underlying prospects. Make sure your assess the one-year rates in conjunction with the commentaries contained in the Earnings Announcements that can be found in the Market Guide News report for the company.
   
   
2. Early-stage emerging companies typically post growth rates that are much higher than what can be sustained over prolonged periods of time. In such instances, don't be discouraged by a decelerating trend so long as the company's current growth rates meet your expectations.