Growth rate one calls generally the relative increase of a size in a fixed time unit. This becomes by the general equation

\ mathrm {growth rate} (t_0, t) = \ left (\ frac {A (t)}{A (t_0)} \ right) ^ \ frac {1} {N} - 1

expressed, whereby N=t-t0 represents the number of the regarded period and A (t) the regarding size of at the respective time.

Compound Annual Growth rate

A special growth rate is the Compound Annual Growth rate (CAGR). It represents size which can be regarded in the economy the average annual growth of one. The CAGR is a substantial index for the view of market tendencies.

The CAGR designates the annual change of an economical characteristic, usually the conversion, between two given years, whereby an exponentially smoothed growth rate is accepted.

Average growth between the years t0 and t, results from the equation:

\ mathrm {CAGR} (t_0, t) = \ left (\ frac {W (t)}{W (t_0)} \ right) ^ \ frac {1} {N} - 1

whereby W (t) is the wirtschaltliche value of the regarded article.

See also

• Cell growth
• Upward gradient

Articles in category "Growth rate"

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