A growth rate depends on the new result and the value used for comparison. An unusually weak earlier period can make a recovery look spectacular in percentage terms.
Suppose revenue falls from AZN 100 to 80, a 20% decline. Returning from 80 to 100 requires 25% growth because the gain of 20 is divided by 80. The business has merely regained its starting level. Saying it grew by a quarter is correct, but incomplete without the earlier history.
A hypothetical export rises from 1 million to 3 million: 200% growth, but only a 2 million increase. Another rises from 100 million to 110 million: 10% growth and a 10 million increase. Rankings by growth rates and by contribution to the total can therefore differ.
An annual rate compares a price or index with the same month a year earlier. When an unusual previous-year jump leaves the comparison, annual inflation can fall even without falling current prices. Explaining this requires index levels and monthly movements, not just two annual rates.
A base effect concerns the comparison point; seasonality concerns recurring movements within a year. Comparing the same month across years partly addresses seasonal patterns, but does not remove unusual events. Seasonal adjustment also cannot turn one observation into a sustained trend.
Look at absolute values and at least one additional earlier period. Check for shutdowns, one-off deals or coverage changes. FinFly analysis should show the level and absolute increase alongside the rate. A base effect explains arithmetic; it does not prove that no genuine improvement occurred.
Yes, from a positive non-zero base. The initial size still matters.
The usual percentage growth rate is undefined with a zero denominator. Report the absolute change rather than inventing a percentage.
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