What is Revenue Growth Rate?
Revenue Growth Rate is a financial metric that evaluates the rate of change in a company's profitability over a specific period, typically comparing the current period's net profit to that of the previous period. It is calculated by subtracting the net profit of the previous period from the net profit of the current period, then dividing the difference by the net profit of the previous period and expressing the result as a percentage. A positive profit growth rate indicates an increase in profitability over time, while a negative growth rate suggests a decrease in profitability.
Understanding the profit growth rate is crucial for assessing a company's financial performance and sustainability. A consistently high profit growth rate may indicate effective cost management, revenue growth, improved operational efficiency, or successful business strategies.
How to Calculate Revenue Growth Rate?
Revenue Growth Rate calculator uses Revenue Growth Rate = ((Current Period Revenue-Previous Period Revenue)/Previous Period Revenue)*100 to calculate the Revenue Growth Rate, The Revenue Growth Rate formula is defined as is a financial metric used to measure the percentage change in a company's net profit over a specific period of time, usually from one period to another, such as quarter-over-quarter or year-over-year. Revenue Growth Rate is denoted by RGR symbol.
How to calculate Revenue Growth Rate using this online calculator? To use this online calculator for Revenue Growth Rate, enter Current Period Revenue (CPR) & Previous Period Revenue (PPR) and hit the calculate button. Here is how the Revenue Growth Rate calculation can be explained with given input values -> 20 = ((600000-500000)/500000)*100.