Growth rate

[gaj104]

Hi.

I'm thinking theres a simple formula to work out my growth rate (in my case negative growth) in the last 9 months (assumed straight line) so I can forecast for a year. Can anyone help? Example shown below.

Many thanks

Book2
	A	B	C	D	E	F	G	H	I	J	K
1	Month 1	Month 2	Month 3	Month 4	Month 5	Month 6	Month 7	Month 8	Month 9		Growth rate
2	5,229,605	5,170,498	4,375,780	4,474,410	4,954,709	4,186,153	3,553,213	4,508,134	3,450,296		?
Sheet1

 

[sujittalukde]

May Be:

Book3
	A	B	C	D	E	F	G	H	I	J
1	Month 1	Month 2	Month 3	Month 4	Month 5	Month 6	Month 7	Month 8	Month 9	Growth rate
2	5,229,605	5,170,498	4,375,780	4,474,410	4,954,709	4,186,153	3,553,213	4,508,134	3,450,296	?
3
4	5220	Start Value
5	3450	End Value
6	8	Period
7	-5.04%	Result
Sheet1

 

[gaj104]

Hi

Thanks for replying.

Does this actually provide a good estimate as you are only using the opening and closing balances as opposed to the full data (i.e the data in the middle will influence the weighting)

I was hoping for a formula that uses all the values.

Thanks

 

[sujittalukde]

Then you have to use weighted average growth rate

Book5
	A	B	C	D
1			Weight	Rate
2	Month 1	5,229,605	1
3	Month 2	5,170,498	2	-1.13%
4	Month 3	4,375,780	3	-15.37%
5	Month 4	4,474,410	4	2.25%
6	Month 5	4,954,709	5	10.73%
7	Month 6	4,186,153	6	-15.51%
8	Month 7	3,553,213	7	-15.12%
9	Month 8	4,508,134	8	26.87%
10	Month 9	3,450,296	9	-23.47%
11	Growth rate	-0.70%	44	-30.73%
Sheet3

But note that this is not the correct growth rate, the growth rate is as calculated earlier in my last post That is the true CAGR m-o-m