Thread: Calculating growth rate for sales

Hi,

I am trying to figure out the growth in sales for a company over the following years. I thought it would be best to use GMR but I'm not sure if I did it right. Also, is GMR really the best way to calculate the growth?


Year.....Sales (IN MILL.)
2008.....$1,379
2007.....$1,038
2006.....$946
2005.....$848
2004.....$914
2003.....$870
2002.....$838
2001.....$1,223
2000.....$1,330
1999.....$1059

I came up with 2.67%.

I did it in excel so it's hard to explain here... but the formula I used it [(1+Rt)(1+Rt-1)...(1+Rt-9)]^(1/10) - 1

Thank you!

If you're looking for A=Pr^t, then 1379=1059r^9, giving you 2.98%