Sales growth shows you how well a business improved over a given time. Calculating this rate reveals an increase or a decrease the in business activity of a given company. This number proves handy when trying to decide if you want to invest in a business. For business owners, it indicates whether the current sales team is effectively doing its job.
Items you will need
Sales for most current year (in dollars)
Sales for initial year (in dollars)
Subtract the earliest date's sales in dollars from the most current sales figures to find the dollar amount of growth. For instance, company A sold $100 worth of goods in 1995 and $150 in 2000. Subtract $100 from $150 to find: $150 - $100 = $50
Divide the dollar amount of growth by the initial year's sales. For the example: $50/$100 = 0.50
Multiply this number by 100 to find the percentage of sales growth. In the example: 0.50 x 100 = 50 percent sales growth
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