Sales Growth Rate Calculator
Determine the rate at which a company's sales have grown over time—a key indicator of business health.
Sales Growth Rate
0%
Formula
What is Sales Growth Rate?
Sales (or Revenue) Growth Rate measures how quickly a company's top-line revenue is growing. It's one of the Big 5 numbers that Rule #1 investors use to evaluate whether a company has a durable competitive advantage.
Rule #1 Guideline
Look for companies with sales growth of 10% or higher consistently over the past 10 years. Growing sales indicate expanding market share and customer demand.
Why Sales Growth Matters
- • Market Position: Growing sales show the company is winning customers and expanding its market.
- • Future Potential: Revenue growth is the foundation for earnings growth and stock price appreciation.
- • Business Health: Consistent growth suggests a sustainable competitive advantage.
Where to Find Sales Data
Sales (Revenue) can be found on the company's income statement in annual reports, or on financial websites like Yahoo Finance, Morningstar, or SEC filings. Look for "Total Revenue" or "Net Sales."
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