Observed revenue growth

What it measures¶

Revenue growth is how much a company's sales rose in a year, as a percentage of the year before: revenue this year ÷ revenue last year − 1. The growth panel calls it observed growth, to set it apart from a growth rate a reader types in as an assumption.

Why it is on the page¶

It is the starting point of the growth panel's identity: growth = reinvestment rate × return on new invested capital (see reinvestment rate and RONIC). Given the observed growth and what the company reinvested, the panel works out the return the growth implies.

Thresholds, their source and the population they were fitted on¶

The row draws no zones. The condition summary never scores growth by its speed: multi-year growth rates persist little more than chance would produce (Chan, Karceski and Lakonishok, 2003), so the band prints revenue growth in its sentence and scores the quality of growth instead.

• Fitted on: no population — a descriptive ratio.
• Evidence grade: not graded.

A worked example¶

Celestica, as the Fundamentals page showed it on 9 August 2026: revenue grew 28.46% in fiscal 2025 and 21.17% in fiscal 2024.

What “No verdict” means here¶

The row carries no verdict of its own. It reads insufficient data — requires the prior period for the oldest stored year.

What the verdict is and is not¶

The figure describes one year's change in sales. Part of it can come from acquisitions; the split between organic and acquired growth is disclosed only in the annual report's text. It is not a forecast and not an instruction to trade the shares.