Tom,

You could calculate the compound growth rate. An example for annual compound rates:

=(1+(most recent value-oldest value)/oldest value)^(1/(most recent year - oldest year))-1

which simplifies to

=(most recent value/oldest value)^(1/(most recent year - oldest year))-1

HTH,
Bernie
MS Excel MVP


"Tom Letcher" wrote in message
...
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
f: +44 (0) 113 384 5874
e:
w: www.evidence.co.uk