Measures the rate of increase in revenue over a specific period.
What it Measures ?
How much revenue has grown compared to last time.
Relevant StakeHolders
CFO, Sales Head, Strategy Team
Why it Matters ?
Tracks overall revenue growth.
In-depth Use Case / Real-world Example
Revenue Growth Rate tracks the percentage increase in revenue from one period to another. For example, if a company earned ₹1,000,000 in the current year and ₹900,000 in the previous year, the revenue growth rate would be 11.1%. This metric reflects the company’s ability to increase sales and grow its business over time. It is crucial for assessing business performance, market expansion, and competitiveness.
Sample Formula
(Current Period Revenue - Previous Period Revenue) / Previous Period Revenue