How to compute growth rate in sales
I need to determine our compounded annual growth rate. Strategy: Sales in the fifth year are 6,175/970 higher than in the first year. The formula for growth is ( Growth rates differ by industry and company size. Sales growth of 5-10% is usually considered good for large-cap companies, while for mid-cap and small- cap The compound annual growth rate metric essentially smoothes out that lumpy growth to calculate a theoretical annual growth rate as if the company's sales had