202211282109 - 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.

Example: Amazon (AMZN)

In Q1 2018, sales roles 43% annually to $51.0 billion, although the figure fell from the previous quarter by an estimated 15.5%. However, this is to be expected for Amazon and other retailers since that previous quarter (Q4 2017) included heightened sales figures because of the holidays.

In addition, 202211170045 - Net Operating Cash Flow Growth (https://www.investopedia.com/terms/o/operatingcashflow.asp) (OCF) did relatively well in Q1 2018 at $18.2 billion, a 4% increase from Q1 2017 year and a 1% decrease from the preceding Q4 2017.

Further Information

Sequential growth is one measure of a company’s progress. Additional growth rates to consider when analyzing a company include a [202211282112 - compound annual growth rate|202211282112 - compound annual growth rate] (CAGR).