Dados B3 › Glossary

Glossary

Revenue growth

How much sales grew against the previous year (1 year) or, on average per year, over five years (5-year CAGR).

What it is

How much sales grew against the previous year (1 year) or, on average per year, over five years (5-year CAGR). Shown on the stocks pages.

How Dados B3 calculates it

1 year: the year's revenue ÷ the previous year's revenue − 1. 5-year CAGR: (the year's revenue ÷ revenue five years earlier)^(1/5) − 1. The previous year's revenue is the one republished with the year's statements, when it exists. Nominal values, inflation not removed.

Example

Illustrative example, with made-up numbers to keep the arithmetic easy: Revenue of R$ 1,000 last year and R$ 1,100 this year: 1-year growth = 10%. Revenue of R$ 1,000 five years ago and R$ 1,610 today: CAGR = (1.61)^(1/5) − 1 ≈ 10% a year.

What to watch for when reading it

• Nominal growth in high-inflation times overstates real growth.
• Revenue growing without profit may not be good news; see the margins.
• Acquisitions and divestments change revenue without the business having grown organically.

See also

• CAGR (compound annual growth rate)
• Net margin

Methodology · All indicators

Educational content to understand what each number means. It is not a recommendation to buy or sell.