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Growth Rate denotes the efficiency in the overall performance of an orgnaization, mainly related to the increase in revenues, net earnings and payout (dividend). The credit standing of the company is antoher criterion. In short, stable increase in ROI is a parameter incdicating Growth Rate.
Increase in
Net income
Operating cash flow
Dividend payment
Deacrease cash flow cycle start from inventory to cash received by customers
Open new market
Develop work environment see what best company in market do
The estimation of growth rates is one of the key points that affect any assessment of the shares as the company's value is determined primarily according to the calculation of future cash flows of the business and not on the basis of the current flows in addition to the investor when deciding to invest in a particular company, it takes into account what will happen to him the future cash flows of the company and so he cares about the future and is expected to occur Fah.ohnak three ways can be relied upon to estimate growth rates are as follows:
1. rely on the data or historical growth rates values.
2. rely on financial analyst estimates.
3. rely on the basics and the foundations of the company to determine Alnmo.ala These three methods must be taken into account in determining growth rates because each of them is given certain information must be taken out when the method is used to assess the current value of the stock.
Positive cash flows or earnings.
Accumulated Retained Earnings
Consistent growth in dividend payments.
Improved Market share.
Income generation and Employment prospects.
Overall credibility in the market.
Agreed with the above answers that YOY performance and ROI is the main criteria to determine the growth of any company however this does not guarantee the future performance.
I agree with all answers given by colleagues.
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