Monthly Growth Comparison
Compare arithmetic mean monthly growth with compounded average growth.
Description
Monthly growth varies across intervals.
Monthly growth varies across intervals. Arithmetic mean growth and compounded mean growth answer different questions about the same observations.
Compare arithmetic mean monthly growth with compounded average growth.
When to use Monthly Growth Comparison
Use this for the following task: Compare arithmetic mean monthly growth with compounded average growth.
Prepare the scenario values in one currency and consistent time periods. Use fractions for fraction fields and percentage points for percent fields.
How to use Monthly Growth Comparison and understand its results
- Prepare the scenario values in one currency and consistent time periods. Use fractions for fraction fields and percentage points for percent fields.
- Enter monthlyValues using the field table, then run the tool.
- Read monthlyGrowthFractions, arithmeticMeanGrowth, compoundMeanGrowth. Interpret flags, units, ordering and placeholder values using the rules below.
- Review any reported issue or failed check, correct the supplied values when appropriate, and verify the result in its intended context.
| Input field | Meaning | Value type and bounds | Requirement |
|---|---|---|---|
| monthlyValues | Monthly values | list of number; each entry: number | Required |
Supply at least two positive monthly observations in chronological order. Return interval fractions, their arithmetic mean and endpoint-based compounded mean.1
growth[i]=value[i+1]/value[i]−1; compound=(last/first)^(1/(n−1))−1 This summarizes the declared operation. Units, indexing, inclusivity and exceptional cases are explained in the surrounding text.
| Output field | Meaning | Value type |
|---|---|---|
| monthlyGrowthFractions | Monthly growth fractions | list of number |
| arithmeticMeanGrowth | Arithmetic mean growth | number |
| compoundMeanGrowth | Compound mean growth | number |
{
"input": {
"monthlyValues": [
100,
200,
400
]
},
"output": {
"monthlyGrowthFractions": [
1,
1
],
"arithmeticMeanGrowth": 1,
"compoundMeanGrowth": 1
}
}Limitations and assumptions
Results are fractions, not percentages. No missing-month interpolation, seasonality adjustment or future projection is performed.
These outputs describe the supplied scenario; accounting definitions, capitalization terms and time periods must match the intended use. Malformed requests produce input errors. A successfully evaluated request can still contain false flags, empty result lists or a result outside the supplied threshold; those outcomes have the meanings stated above.
Alternative or Complementary methods
Choose Organic Paid Traffic Projection for this operation: Compare an assumed compounding organic traffic stream with paid traffic ending at a chosen month. For a complementary task, use Growth Margin Rule for this operation: Screen combined growth and profit margin against a caller-selected rule-of-40 target.
The implementation reference documents the exact calculation, supported input shapes and returned fields.
References
-
Monthly Growth Comparison — tool.io
Similar or alternative tools
- Organic Paid Traffic Projection
Compare an assumed compounding organic traffic stream with paid traffic ending at a chosen month.
- Growth Margin Rule
Screen combined growth and profit margin against a caller-selected rule-of-40 target.