Revenue growth

Also called: sales growth, top line

How much sales grew compared with the year before.

Formula

Growth = (This year's revenue ÷ Last year's revenue) − 1

Worked example

1. This year's revenue = $10.0bn
2. Last year's revenue = $9.0bn
3. ($10.0bn ÷ $9.0bn) − 1

Result: +11.1%

How to read it

Look for steady growth over several years rather than one strong year.

Worked example uses made-up figures for 'Example plc'

See it with real numbers: Any company page → (free account)