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.