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) * 100
ExampleA 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%
|Overview: Revenue Growth|
|Type||Growth StrategyFinancial Analysis|
|Definition||The percentage increase or decrease in revenue between two comparable periods.|
|Related Concepts||Growth StrategyOrganic GrowthTop-line GrowthBottom-line GrowthInvesting|