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

Compare like with like. Year over year removes seasonality; month over month shows momentum but is noisy. Say which one you mean.

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…

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