Sales Growth

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This measures the change in a company's sales from one accounting period to another, expressed as a percentage.

For example, if a company earned $1,000 in revenue in 2007 and $1,500 in 2008, its sales growth would be 50% [($1,500-$1,000)/$1,000]. As with other growth metrics, sales growth is an important indicator of a company's health and ability to sustain its business. However, sales growth may not be indicative of a company's actual productivity, as sales growth may be attributed entirely to new store openings. As a result, Comparable Store Sales is often used as a signal of a company's true financial performance.

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