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Growth and margins

Is the business growing, and how profitably?

5 min · Intermediate · Lesson 6 of 10

Step 1 of 4

Revenue and earnings growth

Growth compares a period with the same period a year earlier. Revenue growth shows demand; earnings growth shows whether profits are keeping up.

  • Above about 10% a year is commonly called strong revenue growth.
  • 0–10% is steady, typical of mature companies.
  • Negative growth means the business is shrinking.

For entertainment and education, not investment advice.