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Long-run revenue growth

A growth rate worked out by fitting one line through every year of revenue, instead of just comparing the first year with the last. One freak year cannot swing it.

Example

A company that jumped 80% in one year and stood still for six has a big 7-year change but a small long-run rate — the line through all seven years is nearly flat.

Worth knowing

It can point the opposite way to the 3-year or 5-year figure, and that disagreement is information: it means the recent years and the longer record are telling different stories.

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