Sales growth

Definition

(Expression) It is a relative measure of changes in sales over recorded periods. It is usually affected by either price or volume or both. However, sales growth could be affected by others factors (controllable and uncontrollable) affecting both price and volume e.g seasonal variations, income level, quality, changes in taste, changes in technology, company's values, e.t.c. It is used as part of profitability ratios. It is therefore used to explain what happens to profitability with other components of costs.