Average Growth Rate
 

If I have a revenue number for 10 concescutive years, what is the best way to
get the average growth rate for these numbers? Thanks!

Average Growth Rate
 

Calculate the revenue growth rate for each pair of consecutive years and then
average those rates.
--
Brevity is the soul of wit.


"Scott" wrote:

If I have a revenue number for 10 concescutive years, what is the best way to
get the average growth rate for these numbers? Thanks!

Average Growth Rate
 

Here's something more specific

1 $10,000,000.00
2 $14,740,634.86 47.41%
3 $16,736,647.04 13.54%
4 $16,922,847.13 1.11%
5 $18,653,648.44 10.23%
6 $26,127,105.88 40.06%
7 $33,074,355.97 26.59%
8 $42,284,677.94 27.85%
9 $42,545,480.92 0.62%
10 $49,387,299.55 16.08%

20.39%

Range is A1:c12.

C2 = B2/B1-1 etc, filled down to C10

C12 = AVERAGE(C2:C10) = 20.39% average growth rate.

Is that what you're looking for?

Dave

--
Brevity is the soul of wit.


"Dave F" wrote:

Calculate the revenue growth rate for each pair of consecutive years and then
average those rates.
--
Brevity is the soul of wit.


"Scott" wrote:

If I have a revenue number for 10 concescutive years, what is the best way to
get the average growth rate for these numbers? Thanks!

Average Growth Rate
 

Dave F,

Thanks for your response. That does what I am looking for, although I was
looking for a formula that I could fit in one cell to accomplish it. Sorry
for not being more specific.

Thanks!

"Dave F" wrote:

Here's something more specific

1 $10,000,000.00
2 $14,740,634.86 47.41%
3 $16,736,647.04 13.54%
4 $16,922,847.13 1.11%
5 $18,653,648.44 10.23%
6 $26,127,105.88 40.06%
7 $33,074,355.97 26.59%
8 $42,284,677.94 27.85%
9 $42,545,480.92 0.62%
10 $49,387,299.55 16.08%

20.39%

Range is A1:c12.

C2 = B2/B1-1 etc, filled down to C10

C12 = AVERAGE(C2:C10) = 20.39% average growth rate.

Is that what you're looking for?

Dave

--
Brevity is the soul of wit.


"Dave F" wrote:

Calculate the revenue growth rate for each pair of consecutive years and then
average those rates.
--
Brevity is the soul of wit.


"Scott" wrote:

If I have a revenue number for 10 concescutive years, what is the best way to
get the average growth rate for these numbers? Thanks!

Average Growth Rate
 

Hello, Dave!
You wrote on Wed, 25 Oct 2006 07:02:01 -0700:

DF 1 $10,000,000.00
DF 2 $14,740,634.86 47.41%
DF 3 $16,736,647.04 13.54%
DF 4 $16,922,847.13 1.11%
DF 5 $18,653,648.44 10.23%
DF 6 $26,127,105.88 40.06%
DF 7 $33,074,355.97 26.59%
DF 8 $42,284,677.94 27.85%
DF 9 $42,545,480.92 0.62%
DF 10 $49,387,299.55 16.08%

DF 20.39%

DF Range is A1:c12.

DF C2 = B2/B1-1 etc, filled down to C10

DF C12 = AVERAGE(C2:C10) = 20.39% average growth rate.

DF Is that what you're looking for?

DF Dave

Maybe an expoential increase would be appropriate? I'd have been
tempted to use:-
INDEX(LOGEST(known_y's,known_x's),1) -1

This would give 0.19052 or 19.05% with your data.


James Silverton
Potomac, Maryland

E-mail, with obvious alterations:
not.jim.silverton.at.comcast.not

Average Growth Rate
 

According to this site, you can use AVERAGE as an array function:
https://www.exceltip.com/st/Calculat...owth/1096.html

Dave
--
Brevity is the soul of wit.


"Scott" wrote:

Dave F,

Thanks for your response. That does what I am looking for, although I was
looking for a formula that I could fit in one cell to accomplish it. Sorry
for not being more specific.

Thanks!

"Dave F" wrote:

Here's something more specific

1 $10,000,000.00
2 $14,740,634.86 47.41%
3 $16,736,647.04 13.54%
4 $16,922,847.13 1.11%
5 $18,653,648.44 10.23%
6 $26,127,105.88 40.06%
7 $33,074,355.97 26.59%
8 $42,284,677.94 27.85%
9 $42,545,480.92 0.62%
10 $49,387,299.55 16.08%

20.39%

Range is A1:c12.

C2 = B2/B1-1 etc, filled down to C10

C12 = AVERAGE(C2:C10) = 20.39% average growth rate.

Is that what you're looking for?

Dave

--
Brevity is the soul of wit.


"Dave F" wrote:

Calculate the revenue growth rate for each pair of consecutive years and then
average those rates.
--
Brevity is the soul of wit.


"Scott" wrote:

If I have a revenue number for 10 concescutive years, what is the best way to
get the average growth rate for these numbers? Thanks!

Average Growth Rate
 

I guess it depends on what your intent with the data is and what kind of
average you're looking to calculate.

I was assuming the original poster was looking for a simple mathematical
average of the population.

Dave
--
Brevity is the soul of wit.


"James Silverton" wrote:

Hello, Dave!
You wrote on Wed, 25 Oct 2006 07:02:01 -0700:

DF 1 $10,000,000.00
DF 2 $14,740,634.86 47.41%
DF 3 $16,736,647.04 13.54%
DF 4 $16,922,847.13 1.11%
DF 5 $18,653,648.44 10.23%
DF 6 $26,127,105.88 40.06%
DF 7 $33,074,355.97 26.59%
DF 8 $42,284,677.94 27.85%
DF 9 $42,545,480.92 0.62%
DF 10 $49,387,299.55 16.08%

DF 20.39%

DF Range is A1:c12.

DF C2 = B2/B1-1 etc, filled down to C10

DF C12 = AVERAGE(C2:C10) = 20.39% average growth rate.

DF Is that what you're looking for?

DF Dave

Maybe an expoential increase would be appropriate? I'd have been
tempted to use:-
INDEX(LOGEST(known_y's,known_x's),1) -1

This would give 0.19052 or 19.05% with your data.


James Silverton
Potomac, Maryland

E-mail, with obvious alterations:
not.jim.silverton.at.comcast.not

Average Growth Rate
 

If you want the number which applied in each of the 9 years would give the
same final value as you've got, then it's =(final/initial)^(1/9)-1.
With Dave F's figures of $10,000,000.00 growing to $49,387,299.55, the
answer is 19.42%, so not quite the same as his 20.39%. You can check it by
applying =previous*(1+percentage), & that gets you from $10,000,000.00 to
$49,387,299.55 in 9 steps.
--
David Biddulph

"Scott" wrote in message
...
Dave F,

Thanks for your response. That does what I am looking for, although I was
looking for a formula that I could fit in one cell to accomplish it.
Sorry
for not being more specific.

Thanks!

"Dave F" wrote:

Here's something more specific

1 $10,000,000.00
2 $14,740,634.86 47.41%
3 $16,736,647.04 13.54%
4 $16,922,847.13 1.11%
5 $18,653,648.44 10.23%
6 $26,127,105.88 40.06%
7 $33,074,355.97 26.59%
8 $42,284,677.94 27.85%
9 $42,545,480.92 0.62%
10 $49,387,299.55 16.08%

20.39%

Range is A1:c12.

C2 = B2/B1-1 etc, filled down to C10

C12 = AVERAGE(C2:C10) = 20.39% average growth rate.

Is that what you're looking for?

Dave

--
Brevity is the soul of wit.


"Dave F" wrote:

Calculate the revenue growth rate for each pair of consecutive years
and then
average those rates.
--
Brevity is the soul of wit.


"Scott" wrote:

If I have a revenue number for 10 concescutive years, what is the
best way to
get the average growth rate for these numbers? Thanks!

Average Growth Rate
 

Although you can roll your own formula, the Rate function will do exactly what
you want. AS there are no cash flows, the intermediate values have no impact. So
use:

=RATE(9,0,-10000000,49387299.55)

=19.42%

--
Regards,
Fred


"Dave F" wrote in message
...
Here's something more specific

1 $10,000,000.00
2 $14,740,634.86 47.41%
3 $16,736,647.04 13.54%
4 $16,922,847.13 1.11%
5 $18,653,648.44 10.23%
6 $26,127,105.88 40.06%
7 $33,074,355.97 26.59%
8 $42,284,677.94 27.85%
9 $42,545,480.92 0.62%
10 $49,387,299.55 16.08%

20.39%

Range is A1:c12.

C2 = B2/B1-1 etc, filled down to C10

C12 = AVERAGE(C2:C10) = 20.39% average growth rate.

Is that what you're looking for?

Dave

--
Brevity is the soul of wit.


"Dave F" wrote:

Calculate the revenue growth rate for each pair of consecutive years and then
average those rates.
--
Brevity is the soul of wit.


"Scott" wrote:

If I have a revenue number for 10 concescutive years, what is the best way
to
get the average growth rate for these numbers? Thanks!