Growth Rate Calculation Examples, Illustration, Concept, Sample Help Online
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Growth Rate Calculation Examples Concept
Growth rate is also a measurement tool that is used by business undertakings to determine the growth of a business in different areas. It can be applied to calculate the trend in any financial measure like sales, profit, expenses etc.basically, growth rate can be calculated using following formula: present value is subtracted by past values and then divided by past value and the result is expressed in percentage.
If the present and past values remain unchanged that is it has the same value then it is considered that the growth rate is zero.
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Growth Rate Calculation Examples Explanation
Let’s take few examples and understand the concept of Growth Rate
Example 1: assume that a company’s sales in the beginning of the month is $40000 and at the end of the month $60000. Now calculate the sales growth rate of the company.
Growth Rate Calculation: ($60000-$40000)/$40000 x 100= $20000/ $40000 x 100 = 50%
This shows that there is 50% growth in the sales of the company.
Example 2: assume that company has employed 1000 women employees in the beginning of the year and at the end of the year number of women employees are 1500. Growth Rate Calculation:
(1500-1000)/1000 x 100 = 25%. This shows that the women employees have increased by 25%
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