GROWTH RATE

GROWTH RATE

(growth rate) Relative, or expressed as a percentage, increase in any economic variable over a single period, usually one year. If a variable measured at discrete time intervals increases from 1 to 1 + X, its relative, or percentage, growth rate was 100 X. If time is considered to be continuous when measuring a variable, the rate of continuous growth is denoted g, and the variable increased from 1 at time 0 to egt at a point in time t. Then yt=у0еgt, And dyt/dt=gy0egt hence (dyt/dt)/yt=g. Because ln(yt)=gt, dln(yt)/dt=g; then the rate of change of the natural logarithm of any variable is equal to the growth rate (increase) of this variable.

Economy. Dictionary. - M.: "INFRA-M", Publishing House "Ves Mir". J. Black. General editor: Doctor of Economics Osadchaya I.M.. 2000 .

GROWTH RATE

the ratio of the value of an economic indicator at a given time to its initial value, taken as a reference base, measured in relative values ​​or as a percentage.

Raizberg B.A., Lozovsky L.Sh., Starodubtseva E.B.. Modern economic dictionary. - 2nd ed., rev. M.: INFRA-M. 479 pp.. 1999 .

Economic dictionary. 2000 .

See what “GROWTH RATE” is in other dictionaries:

growth rate- the ratio of the value of an economic indicator for a given time to its value for the immediately preceding same time or to the value for some other similar time taken as the basis of comparison.… …

growth rate- Expressed as a percentage of growth in the economy, stock prices or profits. The rate of economic growth is usually determined by the growth rate of gross domestic product (GDP). Some companies are trying to track how fast... ... Financial and investment explanatory dictionary

GROWTH RATE- (English rate of growth) – the ratio of one level of a time series (yi) to another, taken as a comparison base (y0): Expressed as a percentage or in growth rates. Indicators of change in time series can be calculated with constant and variable... Financial and credit encyclopedic dictionary

Growth rate- an indicator equal to the growth coefficient multiplied by 100... Economics: glossary

The ratio of the value of an indicator at a given time to its value for the immediately preceding same time or to its value for some other similar time, taken as the basis of comparison. T.r. measured in relative quantities or in... ... Encyclopedic Dictionary of Economics and Law

GROWTH RATE Great Accounting Dictionary

GROWTH RATE- the ratio of the value of an economic indicator for a given time to its value for the immediately preceding same time or to the value for some other similar time taken as the basis of comparison...

growth rate- the ratio of the value of an economic indicator at a given time to its initial value, taken as a reference base, measured in relative values ​​or as a percentage... Dictionary of economic terms

GROWTH RATE, NATURAL- the rate of growth of production volume, ensuring the full use of all production resources... Large economic dictionary

electricity consumption growth rate- - [Ya.N.Luginsky, M.S.Fezi Zhilinskaya, Yu.S.Kabirov. English-Russian dictionary of electrical engineering and power engineering, Moscow, 1999] Topics of electrical engineering, basic concepts EN power consumption rate of growth... Technical Translator's Guide

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Let's find the growth rate of indicators, the growth rate of indicators. Based on the basic indicators, we will calculate the indicators of intensification of production resources contained in formula (1).

We will find the growth rate by relating the data from the second year to the first year and multiplying by 100%. We find the growth rate by subtracting 100% from the resulting figure.

1. The growth rate of products sold is:

(3502: 2604) x 100% = 134.5%,

The growth rate is:

134,5% - 100% = 34,5%;

2. The personnel growth rate is:

(100: 99) x 100% = 101.0%,

The growth rate is:

101,0% - 100% = 1,0%;

3. The growth rate of wages is equal to:

(1555: 1365) x 100% = 113.9%,

The growth rate is:

113,9% - 100% = 13,9%;

4. The growth rate of material costs is equal to:

(1016: 905) x 100% = 112.3%,

The growth rate is:

112,3% - 100% = 12,3%;

5. The growth rate of depreciation is equal to:

(178:90) x 100% = 197.8%,

The growth rate is:

197,8% - 100% = 97,8%;

6. The growth rate of non-current assets is equal to:

(1612: 1237) x 100% = 130.3%,

The growth rate is:

130,3% - 100% = 30,3%;

7. The growth rate of current assets is equal to:

(943: 800) x 100% = 117.9%,

The growth rate is:

117,9% - 100% = 17,9%;

We will enter the calculation results in Table 7.

For base year:

1. Payability of products: 1365: 2604 = 0.524194;

2. Material consumption of products: 905: 2604 = 0.524194;

3. Depreciation capacity of products: 90: 2604 = 0.034562;

4. Capital intensity of production: 1237: 2604 = 0.524194;

800: 2604 = 0,307220.

For the reporting year:

1. Product payment intensity: 1555: 3502 = 0.444032;

2. Material consumption of products: 1016: 3502 = 0.290120;

3. Depreciation capacity of products: 178: 3502 = 0.050828;

4. Capital intensity of production: 1612: 3502 = 0.460308;

5. Ratio of fixation of current assets:

943: 3502 = 0,269275.

We will add the results to Table 8.

Table 8.

Intensification indicators

production resources

We will calculate the methodology for analyzing the five-factor model of return on assets using the method of chain substitutions and consider the impact on the profitability of the five above-mentioned factors.

First, let's find the profitability value for the base and reporting years:

for base year

Krentv(0) = 1-(0.524194+0.347542+0.034562) = 1-0.906298 = 0.1198, i.e. 11.98%

0,475038+0,307220 0,782258

for the reporting year

Krentv(1) = 1-(0.444032+0.290120+0.050828) = 1-0.78498 = 0.2947, i.e. 29.47%

0,460308+0,269275 0,729583

The difference in the profitability ratios of the reporting and base years was 0.1749, or as a percentage - 17.49%.

Now let's look at how the five factors mentioned above contributed to this increase in profitability.

1. Influence of labor intensity factor

Krentv|U = 1-(0.444032+0.347542+0.034562) = 1-0826136 = 0.2223, i.e. 22.23%

0,475038+0,307220 0,782258

0.2223 - 0.1198 = 0.1025, i.e. 10.25%

2. Influence of material consumption factor.

Krentv|M = 1-(0.444032+0.290120+0.034562) = 1-0.768714 = 0.2957, i.e. 29.57%

0,475038+0,307220 0,782258

0.2957 – 0.2223 = 0.0734, i.e. 7.34%

3. The influence of the depreciation capacity factor.

Krentv|A = 1-(0.444032+0.290120+0.050828) = 1-0.78498 = 0.2749, i.e. 27.49%

0,475038+0,307220 0,782258

0.2749 – 0.2957 = -0.0208, i.e. -2.08%

4. The influence of the capital intensity factor.

Krentv|F = 1-(0.444032+0.290120+0.050828) = 1-0.78498 = 0.2801, i.e. 28.01%

0,460308+0,307220 0,767528

0.2801 – 0.2749 = 0.0052, i.e. 0.52%

5. The influence of the working capital turnover factor.

In order to calculate the influence of the working capital turnover factor, instead of the base turnover, we substitute the reporting figure. Let's get the reported profitability. Comparing reported profitability with previous conditional profitability will show the impact of turnover:

0.2947 – 0.2801 = 0.0146, i.e. 1.46%.

In conclusion, let’s make a summary of the influence of factors on the deviation of profitability of the 2nd year compared to the 1st year:

3.2. Comprehensive assessment of the efficiency of economic activities

based on extensiveness and intensity

Let us consider the calculations of the proposed comprehensive assessment methodology using the example of Finzhilservice LLC data for 2 years: 1st year – base year, 2nd year – reporting year. The initial data is presented in Table 7 “Basic indicators for the enterprise for two years.”

We will enter the results of the analysis into Table 9.

Table 9.

Summary analysis of intensification and efficiency indicators

Types of resources	Dynamics of quality indicators, coefficient	Increase in resource per 1% increase in production, %	Share of influence on 100% of production growth		Relative savings of resources, thousand rubles.
			Extensity, %	Intensity, %
1.a) Personnel b) Remuneration with accruals 2. Material costs 3.Depreciation 4. Fixed assets (non-current assets) 5.Current assets
6.Comprehensive assessment of comprehensive intensification

The growth rate is used when analyzing any series of dynamics. The growth rate formula is often used in statistics and economics in conjunction with an indicator such as the growth rate (as a percentage).

DEFINITION

Growth rate shows how many times the indicator has changed in comparison with the base one, and rate of increase reflects how much the studied value has changed.

If the result of the calculation is a positive value, then we can talk about an increasing growth rate, but with a negative value, the rate of the value under study decreases when compared with the previous (base) period.

The growth rate formula is often used in the analysis of investment projects. This indicator is also often used by municipal organizations in calculations:

• calculation of population growth;
• future building needs;
• volumes of service provision, etc.

Growth rate formula

To calculate the growth rate, you need to find the ratio of the indicator under study to the previous (basic) one, then subtract one from the result obtained. The final result is multiplied by 100 to express the result as a percentage. The growth rate formula using the first method looks like this:

Tp=((Pip/Pbp)-1)*100%

Here Tp is the growth rate,

In the case when, instead of the actual value of the analyzed indicators, only the value of the absolute increase is known, an alternative formula is used. In this case, the percentage ratio of the absolute increase to the level in comparison with which it was calculated is found.

Тп=((Pip-Pbp)/Pbp)*100%

Here Tp is the growth rate,

Pbp – indicator of the base period,

Pip is an indicator of the period under study.

Of great difficulty for students is the difference between the growth rate and the growth rate. Let us highlight several provisions in which the difference between these values ​​lies:

1. The growth rate formula and the growth rate formula are calculated using different methods.
2. The growth rate reflects the percentage of one indicator relative to another, and the growth rate shows how much it has grown.
3. Based on calculations using the growth rate formula, the growth rate can be calculated, while the growth rate is not calculated using the growth rate formula.
4. The growth rate does not take a negative value, while the growth rate can be either positive or negative.

Examples of problem solving

EXAMPLE 1

Exercise	For the enterprise Severmet LLC, the following indicators are presented for 2015 and 2016: Enterprise profit 2015 – 120 million. rubles, 2016 – 110.4 million. rubles It is known that in 2017 the amount of income increased by 25 million rubles compared to 2016.
Solution	Let's determine the growth rate in percentage for 2015 and 2016, for which we need the growth rate formula: Tr=P 2016 /P 2015 Here Tp is the growth rate, P2015 – indicator for 2015, P2016 – indicator for 2016. Tr=110.4 million. RUR/120 million rub. * 100% = 92% The growth rate denotes the percentage change in a value in the current period compared to the previous one. To calculate, you need a growth rate formula: Tp=((P 2016 -P 2015)/P 2015)*100% Тп=((110.4-120)/120)*100%=-8% Or the second way: Tp=((P 2016 /P 2015)-1)*100% Тп=((110.4/120)-1)*100%=-8% Let's calculate the figures for 2017 Tr = (120 million rubles + 25 million rubles)/120 million rubles = 1.21 (or 121%) Тп=(145 million rubles/120 million rubles)-1=0.208 (or 20.8%) Conclusion. We see that the growth rate when comparing 2015 and 2016 was 92%. This means that the company’s profit in 2016 decreased by 92% compared to 2015. When calculating the growth rate, the result was a negative value (-8%), which indicates that the company’s profit in 2016 (when compared with 2015) decreased by 8%. In 2017, the profit was 121% compared to 2016. When calculating the growth rate, we see that it was 20.8%. A positive value indicates an increase in profit by exactly this amount of percent.
Answer	When comparing 2015 and 2016, Tr = 92%, TP = 8%, when comparing 2016 and 2017, Tr = 121%, TP = 20.8%.

In order to calculate the increase (in absolute or percentage terms), it is necessary to have the current value and the one with which the comparison is being made. To establish the dynamics of growth, the time intervals must be equal (for example, a week, month, or year).

Calculation of growth is used in the management of financial and economic activities, as well as in statistics. Using a simple mathematical formula, you can find out how much your costs or income (personal or for the enterprise as a whole) have increased over a certain period of time, calculate the increase in customers, and much more. As an example, let's try to calculate the increase as a percentage using a special formula.

Formulas for calculating growth

To begin with, you need to have some value that is taken as a starting point. For example, the population of city M on January 1, 2013 amounted to 100 thousand people.

If you want to know the growth for the year, you will need the population of city M as of January 1, 2014. Let’s say 150 thousand people. Now you can calculate the increase.

The increase in absolute value will be equal to the difference between the current value and the previous one:

• From the population in 2014, subtract the number in 2013: 150,000 - 100,000 = 50,000;
• Total: annual growth is 50 thousand people.

The percentage increase is equal to the ratio of the current value to the previous one, minus 1, multiplied by 100%:

• We divide the current value of 150,000 by the data from the previous period of 100,000. We get 1.5;
• Subtract one: 1.5 - 1 = 0.5;
• Convert to percentages: 0.5 * 100% = 50%;
• Total: population growth over the year is 50%.

To calculate population growth dynamics, you will need annual data as of January 1 of each year.

If the growth value turns out to be negative, it means that there was a decline during the year (in this case, the population in city M would decrease).

As the growth rate as a percentage and the corresponding growth rate. At the same time, everything is usually clear with the first, but the second often raises various questions regarding both the interpretation of the obtained value and the calculation formula itself. The time has come to figure out how these quantities differ from each other and how they need to be correctly determined.

Growth rate

This indicator is calculated in order to find out what percentage one value of a series is from another. In the role of the latter, the previous value or the basic one is most often used, that is, the one that stands at the beginning of the series under study. If the result is more than 100%, this means that there is an increase in the studied indicator, and vice versa. The calculation is very simple: just find the ratio of the value for to the value of the previous or base period of time.

Rate of increase

Unlike the previous one, this indicator allows you to find out not by how much, but by how much the value being studied has changed. A positive value of the calculation results means that it is observed, and a negative value means the rate of decline of the value being studied in comparison with the previous or base period. How to calculate the growth rate? First, they find the ratio of the indicator under study to the base or previous one, and then subtract one from the result obtained, after which, as a rule, they multiply the total by 100 to get it as a percentage. This method is used most often, but it happens that instead of the actual value of the analyzed indicator, only the value of the absolute increase is known. How to calculate the growth rate in this case? Here you need to use an alternative formula. The second calculation option is to find the percentage ratio to the level in comparison with which it was calculated.

Practice

Let's assume that we know that in 2010 the joint stock company "Svetly Put" received a profit of 120,000 rubles, in 2011 - 110,400 rubles, and in 2012 the amount of income increased compared to 2011 by 25,000 rubles. Let's see how to calculate the growth rate and growth rate based on the available data and what can be concluded from it.

1. Calculation of indicators for 2011.

Growth rate = 110,400 / 120,000 = 0.92 or 92%.

Conclusion: In 2011, the company's profit compared to the previous year was 92%.

Growth rate = 110,400 / 120,000 - 1 = -0.08, or -8%.

This means that the income of JSC “Svetly Put” decreased by 8% compared to 2010.

2. Calculation of indicators for 2012.

Growth rate = (120,000 + 25,000) / 120,000 ≈ 1.2083 or 120.83%.

This means that the profit of our company in 2012 compared to the previous year, 2011, amounted to 120.83%.

Growth rate = 25,000 / 120,000 - 1 ≈ 0.2083 or 20.83%.

Conclusion: the financial results of the analyzed enterprise in 2012 turned out to be 20.83% higher than the corresponding figure for 2011.

Conclusion

After we have figured out how to calculate the growth rate and growth rate, we note that on the basis of just one indicator it is impossible to give an unambiguously correct assessment of the phenomenon under study. For example, it may well turn out that the magnitude of the absolute increase in profit increases, and the development of the enterprise slows down. Therefore, any signs of dynamics must be analyzed jointly, that is, comprehensively.