Definition
Compounded Monthly Growth Rate (CMGR) measures the average month-over-month growth of a business metric (e.g., revenue, users) over a specific period, assuming reinvestment of growth.
Related Services
Financial forecasting, growth strategy consulting, and business performance analytics help companies track CMGR to assess and project growth trends.
Problem and Application
Businesses that only analyze raw monthly growth rates may misinterpret their actual long-term growth potential. CMGR provides a clearer picture of consistent growth over time.
Conclusion
CMGR is a valuable metric for evaluating sustainable business expansion. Companies should track it alongside other financial indicators for informed decision-making.
