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Friday, June 10, 2011

Sales Growth Ratio Formula & Analysis

Definition: Sales Growth Ratio/Rate is a measure of the percentage increase in sales between the two time periods.

Formula:

Sales Growth Rate = (Current month's sales - Last month's sales) / (Last month's sales) * 100
Or,
Sales Growth Rate = (Current Year's sales - Last Year's sales) / (Last Year's sales) * 100

Example 1:
Sales in 2008 = $700,000
Sales in 2009 = $900,000
Sales Growth Rate = (

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