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Volume 19/ Number 1Presidents
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By Dr. Thomas J.
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What is differential growth rates of?
Differential growth rates refer to the comparison of growth rates between different time periods or entities.
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Companies or entities that want to analyze and understand the growth patterns in their financial data may be required to file differential growth rates.
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Differential growth rates can be calculated by subtracting the growth rate in one period from the growth rate in another period and then expressing the difference as a percentage.
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The purpose of analyzing differential growth rates is to understand how a specific variable or entity is changing over time relative to other variables or entities.
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The information reported on differential growth rates may include the growth rates of specific variables, entities, or industries over different time periods.
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