1. What is Company Growth Rate?

The company growth rate measures the percentage increase in revenue from one period to another. It's a key metric for assessing business performance, expansion, and financial health.

2. How Does the Calculator Work?

The calculator uses the growth rate formula:

Where:

• \( Revenue_{current} \) — Current period revenue (in any currency)
• \( Revenue_{previous} \) — Previous period revenue (same currency)

Explanation: The formula calculates the relative change in revenue as a percentage, showing how much the company has grown (or shrunk) compared to the previous period.

3. Importance of Growth Rate Calculation

Details: Growth rate is crucial for investors, management, and stakeholders to evaluate business performance, make strategic decisions, and compare against industry benchmarks.

4. Using the Calculator

Tips: Enter both current and previous revenue amounts in the same currency. The previous revenue must be greater than zero for calculation.

5. Frequently Asked Questions (FAQ)

Q1: What time periods should I compare?
A: Common comparisons are year-over-year (YoY), quarter-over-quarter (QoQ), or month-over-month (MoM) depending on your analysis needs.

Q2: What is considered a good growth rate?
A: This varies by industry. Generally, 15-25% annual growth is strong for mature companies, while startups may aim for higher rates.

Q3: Can growth rate be negative?
A: Yes, negative growth indicates revenue decline, which may signal business challenges that need addressing.

Q4: How does this differ from CAGR?
A: This calculates simple period-to-period growth, while CAGR (Compound Annual Growth Rate) measures smoothed annual growth over multiple periods.

Q5: Should I adjust for inflation?
A: For long-term comparisons, using inflation-adjusted (real) revenue figures gives a clearer picture of actual business growth.