# Average annual growth rate (AAGR)

Last updated: 16.03.2016

Average annual growth rate (AAGR) calculates average annual growth rate from time series based on the formula:

(grow rate during period 1 + grow rate during period 2 + grow rate during period 3 + …………+ grow rate during period n ) / number of periods of grow

## Be careful:

in the denominator is not the number of periods covered but number of periods of grow! → 4 periods, but 3 periods of grow

## Example: Average annual growth rate (AAGR) between 2015 and 2010 is thus calculated as (0,13 + 0,06 + 0,00 + 0,11 + 0,05) / 5 = 0,07 (7%).

AAGR therefore considers also the movements within the considered time series. This may cause problems if the values inside the time range fluctuate. In this case, straight-line growth rate may be more appropriate.

Pomohl Vám tento článek? Ohodnoťte jej prosím.

1 = nejhorší, 10 = nejlepší

 Komentář

Articles in series
Tento web používá k poskytování služeb, personalizaci reklam a analýze návštěvnosti soubory cookie. Používáním tohoto webu s tím souhlasíte. Další informace