Income Statement

Revenue Growth

Year-over-year percentage change in revenue.

Definition

Revenue growth measures how fast the top line is expanding (or contracting) compared to the prior period. Reported as a percentage so businesses of different sizes can be compared directly.

Formula

(Revenue this period − Revenue prior period) ÷ Revenue prior period × 100

Why it matters

A persistent slowdown in revenue growth is often the earliest signal of competitive or end-market pressure. Decelerating growth at premium valuations is one of the most common ways to lose money.

How Standard Equity uses it

Shown year over year in the main table. The Revenue row's 5Y and 10Y columns give its compound annual growth rate (CAGR), so you can see whether recent growth is sustained or a blip.

The metric

CategoryIncome Statement
Unit%
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