CAGR Calculation - Example 2

Compound Annual Growth Rate
Knowledge Center

Best Practices
Pankaj, Nepal

CAGR Calculation - Example 2

If net profit for year 2000 is 200 million and for year 2004 is 400 million, then what will be the CAGR?

  John, UK
 

Calculate CAGR Example 2

(400/200)^(1/4) - 1 = (2)^(0,25) - 1 = 1,18 - 1 = 0,18

  Nagaraj.B.R, India
 

CAGR Example 2

OK, I agree with John

  Shafiqul Huq Shajal, Bangladesh
 

CAGR Example 2b

If so the CAGR is 18% then what will be the expected sales for 2014. Is there any formula to forecast the future sales?

  Roel Villanueva
Accountant, Philippines
 

Formula to Forecast Future Sales Based on CAGR (Example 2b)

Using 2004 net profit of 400m as base, we can project the expected sales for 2014 as follows:
400 * (1+.189207)^10 = 2262.74m.

 

More on Compound Annual Growth Rate:
Summary
Forum
CAGR Calculation - Example 1
Compound Annual Growth Rate: CAGR Formula
Basis of Compound Annual Growth Rate (CAGR)
🔥How to Calculate CAGR if there is a Loss in the First Year?
Best Practices
👀CAGR Calculation - Example 2
Special Interest Group

Do you have a keen interest in Compound Annual Growth Rate? Become our SIG Leader

Compound Annual Growth Rate
Knowledge Center



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2022 12manage - The Executive Fast Track. V15.8 - Last updated: 6-7-2022. All names of their owners.