Fundamental Glossary / Growth Metrics
Sales Growth
The percentage change in sales. In most companies this is the same idea as revenue growth.
Formula
(This period sales - last period sales) / last period sales.
What it means
Sales and revenue are often used as synonyms. Where they differ, sales may mean goods sold, while revenue includes services, other operating income, or excise that used to be reported differently.
On Indian statements, "revenue from operations" is the figure to prefer. Other income is not sales.
How to read it
Look at volume and price separately when the company discloses them. Sales can rise because customers bought more, or only because the price list changed.
What to watch
A dealer-heavy model can book sales into the channel that have not reached the end customer. Subsequent returns and rising receivables are the tell.
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.