Revenue Growth Rate Solution

STEP 0: Pre-Calculation Summary
Formula Used
Revenue Growth Rate = ((Current Period Revenue-Previous Period Revenue)/Previous Period Revenue)*100
RGR = ((CPR-PPR)/PPR)*100
This formula uses 3 Variables
Variables Used
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.
Current Period Revenue - Current Period Revenue refers to the profit in the current period.
Previous Period Revenue - Previous Period Revenue refers to the profit earned in the previous period.
STEP 1: Convert Input(s) to Base Unit
Current Period Revenue: 600000 --> No Conversion Required
Previous Period Revenue: 500000 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
RGR = ((CPR-PPR)/PPR)*100 --> ((600000-500000)/500000)*100
Evaluating ... ...
RGR = 20
STEP 3: Convert Result to Output's Unit
20 --> No Conversion Required
FINAL ANSWER
20 <-- Revenue Growth Rate
(Calculation completed in 00.004 seconds)

Credits

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Created by Vishnu K
BMS College of Engineering (BMSCE), Bangalore
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Verified by Kashish Arora
Satyawati College (DU), New Delhi
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2 Growth Ratios Calculators

Revenue Growth Rate
​ Go Revenue Growth Rate = ((Current Period Revenue-Previous Period Revenue)/Previous Period Revenue)*100
Sales Growth Rate
​ Go Sales Growth Rate = ((Current Period Sales-Previous Period Sales)/Previous Period Sales)*100

22 Important Formulas of Financial Ratios Calculators

Fixed Charge Coverage Ratio
​ Go Fixed Charge Coverage Ratio = (Earnings Before Interest and Taxes+Fixed Charges Before Taxes)/(Fixed Charges Before Taxes+Interest)
Free Cash Flow to Firm
​ Go Free Cash Flow to Firm (FCFF) = Cash Flow from Operations+(Interest Expense*(1-Tax Rate))-Net Capital Expenditures
Economic Value Added
​ Go Economic Value Added = Net Operating Profit After Tax-Weighted Average Cost of Capital*Total Invested Capital
Average Collection Period
​ Go Average Collection Period = Accounts Receivable/(Sales for Reporting Period/Reporting Period Length)
Revenue Growth Rate
​ Go Revenue Growth Rate = ((Current Period Revenue-Previous Period Revenue)/Previous Period Revenue)*100
Sales Growth Rate
​ Go Sales Growth Rate = ((Current Period Sales-Previous Period Sales)/Previous Period Sales)*100
Business Quick Ratio
​ Go Quick Ratio = (Current Assets-Inventory of Liquidity Ratio)/Current Liabilities
Quick Ratio
​ Go Quick Ratio = (Current Assets-Inventory of Liquidity Ratio)/Current Liabilities
Interest Coverage Ratio
​ Go Interest Coverage Ratio = Earnings Before Interest and Taxes/Interest Expense
Debt to Equity Ratio
​ Go Debt to Equity (D/E) = Total Liabilities/Total Shareholders' Equity*100
Market Capitalization
​ Go Market Capitalization = Current Share Price*Total Shares Outstanding
Receivables Turnover Ratio
​ Go Receivables Turnover Ratio = Net Sales/Average Accounts Receivables
Free Cash Flow
​ Go Free Cash Flow = Cash Flow from Operations-Net Capital Expenditures
Fixed Asset Turnover Ratio
​ Go Fixed Asset Turnover Ratio = Net Sales/Average Net Fixed Assets
Equity Multiplier
​ Go Equity Multiplier = Total Assets/Total Shareholders' Equity
Inventory Turnover Ratio
​ Go Inventory Turnover Ratio = Cost of Goods Sold/Inventory
Sales to Receivables Ratio
​ Go Sales to Receivables Ratio = Net Sales/Net Receivables
Debt to Assets Ratio
​ Go Debt to Assets Ratio = Total Liabilities/Total Assets
Business Current Ratio
​ Go Current Ratio = Current Assets/Current Liabilities
Current Ratio
​ Go Current Ratio = Current Assets/Current Liabilities
Cash Flow to Sales
​ Go Cash Flow to Sales = Operating Cash Flow/Sales
Total Asset Turnover
​ Go Total Asset Turnover = Sales/Total Assets

Revenue Growth Rate Formula

Revenue Growth Rate = ((Current Period Revenue-Previous Period Revenue)/Previous Period Revenue)*100
RGR = ((CPR-PPR)/PPR)*100

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.

FAQ

What is 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 and is represented as RGR = ((CPR-PPR)/PPR)*100 or Revenue Growth Rate = ((Current Period Revenue-Previous Period Revenue)/Previous Period Revenue)*100. Current Period Revenue refers to the profit in the current period & Previous Period Revenue refers to the profit earned in the previous period.
How to calculate 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 is calculated using Revenue Growth Rate = ((Current Period Revenue-Previous Period Revenue)/Previous Period Revenue)*100. To calculate Revenue Growth Rate, you need Current Period Revenue (CPR) & Previous Period Revenue (PPR). With our tool, you need to enter the respective value for Current Period Revenue & Previous Period Revenue and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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