Revenue Growth Per Year
This represents the revenue growth from year 1 to year 2 which then must be calculated as a percentage.
Revenue growth per year. The answer is 130 000 100 000 30 000. That s 0 5 which times. A growth rate of 10 percent a year sustained over time is remarkably good. If a company generated 75 billion in revenue during 2008 and 100 billion in revenue during 2009 the company experienced roughly a 100 billion 75 billion 1 33 increase in revenue.
Next we divide 600 million into last year s 1 2 billion revenue number. Formula revenue growth revenue this year revenue last year 1. This year s 1 8 billion minus last year s 1 2 billion is 600 million in actual revenue growth. According to research by bain company only about 10 percent of global companies sustain an annual growth rate in revenue and earnings of at least 5 5 percent over ten years while also earning their cost of capital.
Growth rate benchmarks vary by company stage but on average companies fall between 15 and 45 for year over year growth.