This figure represents the compounded or annualized growth rate in a company's revenues, or sales.
Origin
This information is taken from the company’s annual and quarterly income statements for the time period.
Benefit
Revenue growth is the best gauge of how rapidly a company’s core business is growing.
For the Pros
By comparing the three-year annualized growth rate with the one-year growth rate, you can see whether a company’s revenue growth is speeding up or slowing down.