Net Revenue Growth Rate
Percentage
Measures the percentage increase in net revenue from one period to the next. This KPI is crucial for understanding the company's financial health and operational efficiency. High revenue growth can indicate a successful product or service and suggest that a company is outperforming its competitors.
Formula
[(Current Period Revenue - Previous Period Revenue) / Previous Period Revenue] * 100
Example
If a company's revenue was $1,000,000 last year and $1,200,000 this year, the revenue growth rate is 20%. This means that the company's revenue has grown by 20% over the past year.