groeipercentages

Groeipercentages, or growth percentages, describe the relative change of a quantity over a defined period, expressed as a percentage of the initial value. They are used across economics, finance, demography, and science to compare changes in revenue, population, prices, or other measures over time.

Calculation of a simple growth rate from an initial value A to a final value B is: growth = ((B − A) / A) × 100%. A positive result indicates growth, a negative result indicates a decline. For measurements over multiple periods, compound measures are common. The compound annual growth rate (CAGR) is defined as ((Ending / Beginning)^(1 / n) − 1) × 100%, where n is the number of periods.

Other common variants include year-over-year (YoY) growth and quarter-over-quarter growth, which compare values in consecutive periods and are useful for short-term trends. It is important to note whether growth is nominal (not adjusted for inflation) or real (inflation-adjusted).

Examples: Revenue grows from 100 to 120 in one year, growth = 20%. Over five years, growing from 100 to 200 yields CAGR ≈ 14.87% per year.

Limitations and considerations include sensitivity to the starting value, the base effect, and the potential for misinterpretation when large growth comes from a small base. Presenting growth alongside absolute changes and using inflation-adjusted figures can improve clarity.

See also: percent change, growth rate, CAGR, index numbers.