Growth rates of sequentially declining negative numbers

CFA Level I
#1

Hello: what is the best way to determine the 5-year average growth rate of a series of annual EPS numbers that are negative and become less negative with time? For example:

-79.23 -55.32 -47.29 -2.64 -1.72 -1.93 -0.39 -0.03

Some kind of CAGR is actually more what I am looking for but I’m unsure this can be done with negative numbers. My best haphazard guess of obtaining some kind of usable answer is: 1) determine the %-change between years, 2) determine average of the %-changes

Any help is appreciated! Thanks!

#2

Calculate the CAGR as always. For the last 5 years would be ( -0.03 / -2.64 ) ^ (1/4) - 1 = - 67.4%.

In this case you have a negative CAGR which is interpreted as that " earnings per share loss" or simply “loss per share” is reduced 67.4% per year on average.

I know that in real world a negative EPS is not used due that it lacks of usefulness and an adequate interpretation.