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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