Alongside corporate earnings, the development of sales is one of the most important indicators of a company's success. The analysis and comparison of sales or sales per share, as well as sales development or sales growth therefore also play an important role for investors, stock traders and analysts. In this article you will learn what the sales growth is, how it can be calculated and how to find the sales growth of a stock in the Trader Workstation (TWS).
Sales growth: definition
Sales growth is the percentage change in a company's sales in a given period compared with the previous period. It usually refers to a quarter, a fiscal year, or the last four quarters.
The positive development of a company's sales, i.e. stable and continuous sales growth, is a meaningful fundamental indicator of a company's success and is taken into account by investors when valuing shares.
Calculation of sales growth
Sales growth can be calculated by taking the difference between the sales of the current period and the sales of the previous period and then dividing it by the sales of the previous period and multiplying it by 100. Either total sales can be used for the calculation or sales per share.
Sales growth = (sales current period - sales previous period) / sales previous period x 100
Show sales growth in TWS
In the Trader Workstation (TWS) you can display the sales growth for each share. Three different key figures/designations or time periods are available to you:
- Change in revenue in % - MRQ one (1) year ago.
- Sales growth in the last quarter compared with the same period of the previous year.
- Change in revenue in % - TTM
- Sales growth in the last 12 months compared with the same period of the previous year.
- Sales growth rate in % - 5-year average
- Average sales growth over the last 5 years.
