Home » Financial Concepts » Revenue Growth

Revenue Growth


Revenue growth is the increase (or decrease) in a company’s sales from one period to the next. Shown as a percentage, revenue growth illustrates the increases and decreases over time identifying trends in the business.


The formula for calculating revenue growth is:

Revenue Growth Formula

Amounts shown in thousands (000’s).

If your revenue for this year is 4,926 and for last year it was 4,531 your revenue growth would be:

Revenue Growth Example

Book Excerpt:

(Excerpts from Financial Intelligence, Chapter 25 – The Investor’s Perspective)

How much growth is reasonable? It depends on the company, the industry, and the economic situation. A growth rate of 10 percent a year, sustained over time, is remarkably good. (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.)

Look up another Financial Concept:

A  B  C  D  E  F  G  H  I  L  M  N  O  P  Q  R  S  T  V  W 

Look up another Financial Concept:

A  B  C  D  E  F  G  H  I  J  K L  M  N  O  P  Q  R  S  TV  W  X  Y  Z

Enroll in Online Financial Training today, it's only $99

Looking for training on the income statement, balance sheet, and statement of cash flows? At some point managers need to understand the statements and how you affect the numbers. Learn more about financial ratios and how they help you understand financial statements.

Our online training provides access to the premier financial statements training taught by Joe Knight. Learn finance in a fun and clear way that’s easy and painless.