Formula explanation:
1, current period/the first n years: it should be the end of this year/the end of the first n years, where the end of the first n years refers to the end of the penultimate n year excluding this year, for example, the asset growth rate for the four years at the end of 2005 is calculated.
The calculation period should be 2005, 2004, 2003 and 2002, but the end time of the first four years should be 200 1. Parentheses calculate the comprehensive growth index of n years, not the growth rate.
2. ()1(n-1) is the square root of the growth index of total assets in n years in brackets. That is, exponential average. Because the values in brackets include the cumulative growth of N years, which is equivalent to compound interest calculation. So it is necessary to find the average value of roots.
It should be noted that the root sign should be n, not N- 1, unless the end of the previous n years is changed to the beginning of the previous n years. In short, the root number must be consistent with the number of periods corresponding to the comprehensive growth index in brackets. How to define the formula can be understood by users.
3. [() 1 (n-1)]-1,minus1is because the comprehensive growth index calculated in brackets contains1of the base period, and the average growth index is after the prescription.
It is still greater than 1. What we need is the average annual growth rate, that is, only the incremental part is examined, so we must remove 1 in the base period, so we must subtract 1.
Extended data:
Basic types:
The growth rate refers to the ratio of the growth of a certain data index in a certain period to the base period data.
The year-on-year growth rate generally refers to the growth rate compared with the same period last year. Year-on-year growth rate (range) compared with the previous period, year or history. The development speed can be divided into year-on-year development speed, ring-on-ring development speed and fixed-base development speed due to different base periods. Expressed as a percentage or multiple.
Ring growth rate generally refers to the growth rate compared with the previous period.
Chain growth rate = (the current value of an indicator-the previous value of the indicator)/the previous value of the indicator * 100%. For example, the month-on-month growth in May 2008 and April 2008 refers to the growth amount (or growth rate) always based on the previous period. Generally, a table will be made to list the month-on-month growth of several years for analysis and comparison.
Fixed base growth rate: If you observe the data of several periods and compare the data of each period with the data of the same base period, this comparison method is called fixed base comparison. For example, the GNP values of 1970, 1980, 1990 and 2000 in a certain period are compared with 1949, and the four ratios obtained are called fixed base growth rates.
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