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Revenue growth is the percentage increase in revenue between two periods of time. It can be calculated year over year, quarter over quarter or by comparing the current quarter with the same quarter last year.Top-line GrowthTop-line growth is calculated using gross revenue for two comparable periods such as the current quarter and the previous quarter.
Bottom-line GrowthBottom-line growth is calculated with the net profit for two comparable periods. CalculationRevenue growth is is calculated as follows:growth = ((current revenue - previous revenue) / previous revenue) * 100ExampleA firm earned $89 million this quarter and $81 million last quarter. Their quarter-over-quarter top-line revenue growth is calculated as:growth = ((89-81) / 81) * 100growth = 9.877%
Business Strategy
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