The growth rate is a term that gauges a company's pace of expansion. It is reported as a percentage and is often used to measure the success of a firm over time.
The growth rate is calculated differently for each statistic. Examples:
1) Year-over-year (YoY) growth rate, which measures a metric's growth from the prior year.
2) Quarter-over-quarter (QoQ) growth rate compares a metric's increase from one quarter to the next.
3) Month-over-month (MoM) growth rate, which compares current metric growth to prior month growth.
4) Revenue, profit, customers, users, and transactions are popular growth rate measurements.
Growth rate helps firms assess their performance and discover areas for development. It also tracks the company's goals and may be used to compare performance to competitors or industry standards.