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Forecasting
Growth rates
The change in a metric over a period as a share of the starting value: month over month, quarter over quarter, year over year.
Owned by: Entry analystTest band: Entry analyst
The formula
Growth % = (This period − Prior period) ÷ Prior period
In practice
Compare like with like. Year over year removes seasonality; month over month shows momentum but is noisy. Say which one you mean.
The kind of thing the test asks
- Q2 revenue was $250k; Q1 was $200k. Quarter-over-quarter growth is…
- December revenue is 40% above November. The right comparison to judge momentum is…