Fundamental Glossary / Growth Metrics
Revenue Growth
The percentage change in revenue from one period to another.
Formula
(This period revenue - last period revenue) / last period revenue.
What it means
Revenue growth is the top-line pace of the business. It is the cleanest growth number when the revenue definition itself has not changed.
Compare like with like: consolidated with consolidated, and constant currency when exchange rates moved the reported figure.
How to read it
Growth with a stable margin is worth more than growth that was bought with discounts. Pair the percentage with gross margin and with cash collection.
What to watch
Acquisitions, a change from gross to net accounting, and a one-time contract can all print growth that the old business did not earn. Ask for organic revenue.
This note explains the term. It is not a research recommendation, a target price, or a comment on any security. Ratios and regulatory thresholds change; use the latest filing or circular for a live figure.