Quarter-over-Quarter (Q/Q) Growth Calculator
Use our free Quarter-over-Quarter (Q/Q) growth calculator to evaluate the quarterly rate of change in a financial metric.
What is Quarter-over-Quarter Growth?
Quarter-over-quarter growth (Q/Q) is a financial metric that compares the financial performance of a company between two financial quarters, which are usually one quarter apart. The Q/Q growth rate is a way for traders to measure the quarterly change in company financials.
Q/Q Growth Formula
Formula
Q/Q Growth = (Current Quarter Value / Previous Quarter Value) - 1
Where
Current Quarter Value = the most recently reported quarterly financial metric value
Previous Quarter Value = the previously reported quarterly financial metric value
Quarter-over-Quarter Growth Calculation Example
As an example, a company has $300 million in sales, according to their most recent quarterly financial report, whereas, the previous quarter, the company reported $200 million in sales.
Given the following:
Current Quarter Value = $300 million
Previous Quarter Value = $200 million
We then plug the values into the formula to get the Q/Q growth rate:
Q/Q Growth = (Current Quarter Value / Previous Quarter Value) - 1
Q/Q Growth = ($300 million / $200 million) - 1 = 0.5 or 50.0%
The result of a 50% quarter-over-quarter growth rate indicates that the company grew their sales by 50% within one quarter.
Quarter-over-Quarter Growth and Financial Analysis
Quarter-over-quarter growth is a financial metric used by traders and investors to analyze the performance of a company on a quarterly basis.
A positive Q/Q growth rate indicates that a company's quarterly performance is improving. Whereas, a negative Q/Q growth rate indicates that quarterly performance is declining.
By analyzing a company's financials on a quarterly basis, a trader is able to get a better picture of how consistent a company performs on a quarter-over-quarter basis.
