How To Calculate Annual Revenue Growth Rate

How to calculate total revenue growth in accounting determining a company s revenue growth rate and also understanding how that rate can be manipulated at smaller firms.

How to calculate annual revenue growth rate. Determining the growth rate over a one year period is straightforward. A company earned 10 000 in 2011. The revenue growth formula. Divide the result by the first month revenue and then multiply by 100 to turn it into a percentage.

Obtain the income statement for the company for which you would like to calculate revenue growth. The formula for calculating the annual growth rate is growth percentage over one year where f is the final value s is the starting value and y is the number of years. Revenue month b revenue month a revenue month a x 100 revenue growth rate. How to calculate revenue growth rate.

You simply take the sales difference divide it by the starting revenue total and multiply the result by 100. To calculate revenue growth as a percentage you subtract the previous period s revenue from the current period s revenue and then divide that number by the previous period s revenue. You can find this in the annual report or the 10 k. Both of these documents are mandatory for public companies and you can usually find them on the investor relations section of the company website.