Forum Discussion
Forecast using Average Growth Rate
A user helped me forecast growth based on 2020 Growth (see Projected GrwthAS column). Now I am taking the AVERAGE GROWTH over time (averaging the Growth column from 2016 - 2020) to forecast (see Proj...
I would argue with your executives that the average growth rate is a distraction from what they should actually be focusing on which is on recovery (or repeating what they did in 2018).
Your growth rate is a derivative. Your growth rate change is a double derivative. Ideally the growth rate change is a positive number.
Here's the data based on your example:
PY = CALCULATE(sum(GrowthRate[AS]),DATEADD(GrowthRate[Process],-1,YEAR))
GR = Divide(sum(GrowthRate[AS])-[PY],[PY])
PY GR = CALCULATE(GrowthRate[GR],DATEADD(GrowthRate[Process],-1,YEAR))
GR Deriv = DIVIDE(GrowthRate[GR]-GrowthRate[PY GR],GrowthRate[PY GR])