What is Sales Growth Rate?
Sales Growth Rate is a financial metric that measures the rate of change in a company's sales over a specified period of time, typically from one period to another (e.g., quarter-over-quarter, year-over-year). It is calculated by taking the difference between the sales of the current period and the sales of the previous period, then dividing that difference by the sales of the previous period and expressing the result as a percentage. A positive sales growth rate indicates that the company's sales have increased over time, while a negative growth rate signifies a decline in sales.
Sales growth rate is a critical indicator of a company's performance and market competitiveness. A consistently high sales growth rate may indicate effective marketing strategies, successful product launches, or expanding market share.
How to Calculate Sales Growth Rate?
Sales Growth Rate calculator uses Sales Growth Rate = ((Current Period Sales-Previous Period Sales)/Previous Period Sales)*100 to calculate the Sales Growth Rate, The Sales Growth Rate formula is defined as a financial ratio that measures the percentage increase or decrease in a company's sales from one period to another. Sales Growth Rate is denoted by SGR symbol.
How to calculate Sales Growth Rate using this online calculator? To use this online calculator for Sales Growth Rate, enter Current Period Sales (CPS) & Previous Period Sales (PPS) and hit the calculate button. Here is how the Sales Growth Rate calculation can be explained with given input values -> 75 = ((700000-400000)/400000)*100.