Earnings and Sales Growth; what it is and why it matters.

 

What is the earning and sales growth? 

Sales growth, also called revenue growth, is the profit that a company makes; it's the total money that comes into a company before any subtractions. It can tell us how well they're selling, and it's a good indicator of how healthy the company is.

Earnings growth is sometimes considered the most important way to measure how well the company is doing. It tells us how much profit the company retained after subtractions, like paying employees or paying off debt. 

The more these two grow, the better.  

Why compare the increase from last year's quarter to this one?

The blog covers the growth in comparison to last year's quarter to account for seasonal increases. For example, cruise companies are going to do probably do better in the holiday season (so around quarter four) than they would in any other season.