Van Horne and Wachowicz (2013:122) say  sales growth is anincrease in the stability of the number of sales made by the company for each period of the financial year. Sales growth is an increase in terms of numbers, the productivity of the company to sell its products from the previous year.  Widhiari and Merkusiwati (2015: 459), sales growth is the company’s success in implementing investments in the previous period which can be used as a prediction of the company’s sales growth in the future. According to Hansen and Juniarti (2014), sales growth is a change in a company’s total sales. According to Barton, et al. (1989), sales growth reflects the manifestation of investment success in past periods and can be used as a prediction of future growth. Sales growth is also an indicator of the company’s demand and competitiveness in an industry.

Menurut Sofyan (2013:309), rasio growth describes the percentage growth of the company’s posts from year to year. This ratio consists of an increase in sales, an increase in net profit, earnings per share  , and an increase in dividends per share. Butje & Tjondro (2014) states that growth in sales is an important indicator of market acceptance of products and/or services from the company, where the revenue generated from sales will be used to measure the growth rate of sales.  Irham Fahmi (2012:69) defines growthas a ratio that measures how much a company is capable of maintaining its position in the industry and in economic development in general. This growth ratio is seen from various aspects, namely sales, earnings after tax  (EAT), earnings per share, dividends per share, and market price per share.

An example of calculating sales growth is as follows:

  • PT Mei Jaya has the following sales data:
  • Sales in 2021 = Rp1.9 Milyar
  • Sales in 2022 = Rp2.3 Milyar

Then the calculation:

  • Growth Ratio = × 100%

=  100%  ×

   = 0.21 = 21%

  • A company has sales data for year 1 of Rp 7 billion and year 2 which is Rp6.8 billion.

Then the calculation:

  • Growth Ratio = × 100%

=  100%  ×

   = 0.4468 = 44.68%

References:

  • Aprianto, Muhammad. 2019. “The Effect of Sales Growth and Leverage on Tax Avoidance With Instutional Ownership as a Moderation Variable”. Proceedings of the 2nd Expert National Seminar 2019. ISSN (P) : 2615 – 2584. ISSN (E) : 2615 – 3343.
  • Brigham, Eugene and Joel Houston. 2012. Fundamentals of Financial Management. Edition 11 Book 1, Salemba Empat, Jakarta.
  • Budianti, Shinta and Khirstina Curry. 2018. “The Effect of Profitability, Liquidity, and Capital Intensity on Tax Avoidance”. 4th National Seminar on Scholars in 2018. ISSN (E) : 2540 – 7589. ISSN (P) : 2460 – 8696.
  • Cahyanti, I. S., Muhsin and AKM Bambang Suharto. 2017. “Profitability, Leverage, Liquidity & Tax Avoidance: The Case of Mining Companies Listed in the Jakarta Islamic Index”. Ekubis Journal Volume 2, No. 1, September 2017. P- ISSN: 0254.351.
  • Dewinta, Ida Ayu Rosa. 2016. “Effect of Company Size, Company Age, Profitability, Leverage, And Sales Growth On Tax Avoidance”. E-Journal of Accounting Udayana University Vol.14.3. March (2016): 1584-1613. ISSN: 2302-8556
  • Fahmi, Irham. 2016. Introduction to Financial Management, Alfabeta Publishers, Bandung.

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