Metric
Revenue Growth
Top-line sales expansion year over year.
Formula
(Current Revenue − Prior Revenue) ÷ Prior Revenue
Definition
Revenue growth measures how much the company's sales have expanded over a period. It's the clearest sign of market traction.
Why it matters
Sustained growth, combined with strong margins, compounds into meaningful long-term value. But growth bought through aggressive pricing or acquisitions is worth less than organic growth.
Building blocks
- Revenue
- Total money earned from selling products or services.
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