CAGR Calculation - Example 2

Compound Annual Growth Rate
Knowledge Center

 

Next Topic

Compound Annual Growth Rate > Forum > CAGR Calculation - Example 2

CAGR Calculation - Example 2
Pankaj
If net profit for year 2000 is 200 million and for year 2004 is 400 million, then what will be the CAGR?
 

 
Calculate CAGR Example 2
John
(400/200)^(1/4) - 1 = (2)^(0,25) - 1 = 1,18 - 1 = 0,18
 

 
CAGR Example 2
Nagaraj.B.R
OK, I agree with John
 

 
CAGR Example 2b
Shafiqul Huq Shajal
If so the CAGR is 18% then what will be the expected sales for 2014. Is there any formula to forecast the future sales?
 

 
Formula to Forecast Future Sales Based on CAGR (Example 2b)
Roel Villanueva, Accountant, Philippines, Member
Using 2004 net profit of 400m as base, we can project the expected sales for 2014 as follows:
400 * (1+.189207)^10 = 2262.74m.
 

     

Read all responses and join this discussion yourself.
Support your career and personal development with 12manage, the management platform.

    Log in


Special Interest Group Leader

Interested? Sign up for free.


Compound Annual Growth Rate
Summary
Forum
Best Practices


    Compound Annual Growth Rate
    Knowledge Center

     

    Next Topic



    About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
    2019 12manage - The Executive Fast Track. V15.2 - Last updated: 18-11-2019. All names of their owners.