Definition of Sequential growth:
Sequential growth is a measure of a company's short-term financial performance that compares the results in a recent period to those of the period immediately preceding it. In financial reporting, sequential growth often compares results between two quarters. A company might report 3% sequential sales growth, meaning that its revenue has increased by 3% since the previous quarter.
A financial measure which compares the recent performance of a firm with the period preceding it. For example, if a monthly report states that the firm experienced 5% sequential sales growth, it means that recent sales have increased by 5% since the previous month.
When considering how much weight to place on reports of sequential growth (or the lack thereof), it is important to keep in mind that seasonal fluctuations often affect a company's short-term performance. For example, a major retailer might report 10% sequential growth in the fourth quarter, then see a relative decline in revenue in the first quarter of the following year.
How to use Sequential growth in a sentence?
- Sequential growth compares a company's recent financial performance to its performance in the period immediately before.
- While sequential growth is a useful metric, keep in mind that seasonal fluctuations and other cyclical factors can affect a company's short-term performance.
- Other somewhat similar metrics, like a company's compound annual growth rate, are also useful in analyzing a company's performance over time.
Meaning of Sequential growth & Sequential growth Definition