Growth
Revenue growth
Rev. growth
What it is
Year-over-year percentage change in revenue. It's the engine of any growth thesis — without revenue growth, no durable earnings growth.
How to read it
Quality of growth matters as much as the number. Organic growth (selling more products) beats growth-by-acquisition. Acceleration is a great signal; deceleration over several quarters is a warning.
Common reference points
- Hyper-growth> 30%
- Strong growth15 – 30%
- Moderate growth5 – 15%
- Stagnation or decline< 5%
Orders of magnitude, not a rule: the same number does not mean the same thing from one sector to the next.
What it does not tell you
Strong growth can hide problems — falling margins, dilution, rising debt. Always look at growth AND margins together.
Other measures — Growth
Educational content. Polaris is not a registered investment adviser and makes no recommendation.