Revenue Growth Rate

Revenue Growth Rate is an indicator of how well a company is able to grow its sales revenue over a given time period. While the revenue is an actual number, the revenue growth rates simply compares the current sales figures (total revenue) with a previous period (typically quarter to quarter or year to year).

 

This provides an indicator that allows easier comparisons between different firms (especially in the same industries or markets) and provides a measure of the extent to which a company is able to grow.

 

Revenue Growth Rate = Revenue this period / revenue previous period

 

This indicator is included in the book: Key Performance Indicators - the 75+ measures every manager needs to know, which contains an in-depth description of this KPI, as well as practical advice on data collection, calculations, target setting, and actual usage.

 

 

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