Growth rate
Growth rate measures the relative change in an indicator — revenue, customer base, unit count — between two periods. It is one of the most closely watched metrics investors use to assess the momentum and potential of a business model.
In practice
A franchise network showing 25% annual unit growth attracts candidates and investors more easily than a competitor at 5%. But a high rate can mask deteriorating quality: if renewal rates fall in parallel, growth is superficial. Analysts routinely pair growth rate with churn to build an honest picture of actual business dynamics.