Year-over-year revenue growth refers to the increase in a company's total revenue in a given period compared to the same period last year. Here's how to calculate year-over-year revenue growth:
1. Calculation formula.
Year-over-year revenue growth rate = (Revenue for the period - Revenue for the same period) 100% of revenue for the same period
Among them, the revenue for the period is equal to the sum of the sales of the period and the average unit cost of the period, and the revenue for the period is equal to the sum of the sales of the same period last year and the average unit cost of the same period last year.
2. Calculation steps.
1.Determine current and contemporaneous revenues. The revenue for the current period can be obtained through the company's financial statements or sales records, while the revenue for the same period needs to be obtained by checking the financial statements or sales records of the same period last year.
2.Calculate the current period revenue and the same period revenue into the formula. According to the formula, subtract the revenue for the period from the revenue for the period, divide it by the revenue for the same period, and finally multiply it by 100% to get the year-over-year revenue growth rate.
3. Precautions.
1.When calculating the year-over-year revenue growth rate, you need to ensure the accuracy and reliability of your data. If there are anomalies or errors in the data, the accuracy of the calculation results will be affected.
2.When comparing income data from different years, you need to pay attention to the impact of factors such as inflation on the data. If inflation is high, you need to consider using comparable** to calculate the year-over-year growth rate.
3.When analyzing the year-on-year revenue growth rate, it is necessary to conduct a comprehensive analysis in combination with other financial indicators and market environment and other factors to have a more comprehensive understanding of the company's operating conditions and development trends.
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