Revenue Growth Rate KPI


This entry is part 7 of 10 in the series Financial KPIs

Since the primary goal of a business is to make money, the revenue growth rate is an important metric to keep an eye on. Revenue is the income a business receives from its normal business activities. Revenues are “top line”. Revenues are expressed as total currency received over a period of time. Business investors will want to see revenue growth, even if profitability growth is not great or even good.

Growth rates could be expressed over a year, month or quarter or any other time period that makes sense. The formula is as follows.

\mathbf{Revenue\;Growth\;Rate = \left( \dfrac{Revenue\;this\;period - Revenue\;last\;period}{Revenue\;last\;period}\right)x100}

 

For more information, The Main KPI Types has a list of some KPIs and their types.

Series Navigation<< EBITDA KPIReturn on Assets KPI >>

Leave a Reply