Quarterly Revenue Growth

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Definition of 'Quarterly Revenue Growth'

Quarterly revenue growth is the percentage increase in a company's revenue from one quarter to the next. It is a key metric used to measure a company's financial health and growth potential.

There are a few different ways to calculate quarterly revenue growth. One common method is to divide the current quarter's revenue by the previous quarter's revenue and then multiply the result by 100. For example, if a company's revenue in the current quarter is $100 million and its revenue in the previous quarter was $90 million, then its quarterly revenue growth would be 11.1%.

Another method for calculating quarterly revenue growth is to use a moving average. A moving average is a calculation that takes the average of a set of numbers, and then adds the newest number to the set and drops the oldest number. This creates a new average that is more reflective of the current trend.

Quarterly revenue growth is important because it can help investors and analysts assess a company's financial health and growth potential. A company with strong quarterly revenue growth is likely to be a good investment, as it is likely to continue to grow in the future. Conversely, a company with weak quarterly revenue growth may be a poor investment, as it is likely to struggle to grow in the future.

Quarterly revenue growth is also important for companies themselves. It can help them to track their financial performance and make adjustments as needed. Companies with strong quarterly revenue growth may want to invest in new growth opportunities, while companies with weak quarterly revenue growth may need to cut costs or make other changes to improve their financial performance.

Overall, quarterly revenue growth is a key metric that can be used to assess a company's financial health and growth potential. It is important for investors, analysts, and companies themselves to understand how to calculate and interpret quarterly revenue growth.

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