For many years I have been using the formula

(most recent value-oldest value)/oldest value

to calculate growth in Excel. It has recently occured to me that this is not
ideal for the datasets I am currently using (a number of performance
measures by year from 2000 to 2004 inclusive). The issue for me is that
where an institution had a 'bad year' in 2000 (i.e. achieved an
uncharacteristically low score), their growth value will be considerable,
even if the values in 2001, 2002, 2003 & 2004 had all been very similar (or
even fell in that period, so long as the 2004 value is still greater than
the value in 2000).

I am considering switching to a growth measure which averages the year on
year growth, but before I do, I'd just like to check what other people do -
if you've encountered this issue I'd be interested in & grateful for your
feedback.

Many thanks,

Tom

Tom Letcher
Data Analyst
Evidence Ltd
103 Clarendon Road, LEEDS, LS2 9DF, UK
t: +44 (0) 113 384 5684
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w: www.evidence.co.uk