Course · Act III: Reading the Numbers · Chapter 13
Revenue growth and CAGR
Measuring growth: year-over-year growth, CAGR, the rule of 72, and organic growth vs. growth bought through acquisitions.
Key terms
- YoY growth
- (This period − same period last year) ÷ same period last year.
- CAGR
- Compound annual growth rate: the steady yearly rate from start to end over several years.
- Rule of 72
- 72 ÷ growth rate ≈ years to double.
- Organic growth
- Growth from the existing business, excluding acquisitions.
“Growth & Trends” is part of the full course: 5 puzzles on revenue growth and cagr, with a story that carries through all five acts. Try this act’s free chapter, “Margins”, first.