What are in finance, what are the growth rate?
growth rate is the rate of what specific factor or variable related to a specific economic situation increases the value with a specific time frame. Measurement of growth rate is useful for investors because the numbers facilitate the projection of the expected return of the asset over a period of time. The growth rate is also useful as historical data, allowing to assess the growth reported by investment during specific periods in the past and in the future this data is related to possible results.
When the growth rate is calculated as a means of prediction of future movement ascending ascension, they are usually described as expected or the prospective measure. The process often involves examining the current state of society that gives security. Factors such as annual incomes of business, higher earnings, dividends that were ppomoc in the current fiscal year and even the general impact of the economy on profitability P P -The removal is assessed in the evaluation of the growth rate. Along with the determination of the growth rate, as is today, this approach also requires projection, what will be the next year, two years since today or maybe even five years. If the projection suggests that the movement of the rate will lead to a constant return for the investor, then it is very likely that the growth shares shares will acquire and hold them as long as the growth occurs.
When the growth rate focuses on the evaluation of the previous growth rate over several years, this is often referred to as the end growth rate . Consider the same factors that use historical data to monitor growth movement up and down in a certain society or even in the industry. The collection and evaluation of these historical data is often frequent before attempting to determine the growth rate, because the analysis of several time periods often provides data that is very useful in creating more accurate projections.
It is important to understand that I will include growth ratesIt compares an increase in specific safety with a typical amount of growth that occurred in the same industry and at the same time. The use of an industrial rate as a benchmark can help the investor to determine whether the growth rate exposed to a specific company above or below this average and serves as a strong indicator of whether investment in the shares of this company is a good idea. Benchmarks for different types of industry will vary, with an established or more advanced industry tend to have a lower rate than the newer and expanding industry.