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NuttinButFun2
 
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Default how do i calculate CAGR for a series of years of revenues?

I am trying to calculate the CAGR for a multiple years of revenues for a
company. There is no negative cash flow involved because it is not an
investment. The XIRR function won't work without at least one negative cash
flow.

Thank you
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Duke Carey
 
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You want to
1) divide the final year's revenue by the first year's revenue
2) raise that result to the power of the reciprocal of the number of years
3) subtract one from the result

Thus, if you have 2000's revenues as $1,000 and 2004's as $1,800, in cells
A1 and A2, respectively, you use this formula

=(a2/a1)^(1/4)-1

which would equal 15.8%

"NuttinButFun2" wrote:

I am trying to calculate the CAGR for a multiple years of revenues for a
company. There is no negative cash flow involved because it is not an
investment. The XIRR function won't work without at least one negative cash
flow.

Thank you

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