Expert: Paul Henneman - 3/25/2009

Question
Can year-over-year revenue growth rate decrease by more than 100%?

Answer
Janet,
  No, year over year revenue growth rate cannot decrease by over 100%. Since total revenues of a company can not be under 0, the maximum negative growth rate a company could achieve would be to lose all of its existing revenues, negative 100%.
  If the question was related to profits instead of overall reveneus, the answer would be yes. A company could go from earning a healthy profit, to producing a negative profit and losing money, resulting in more than a 100% negative fall in profits. But this does not apply to overall revenue, a company can not have negative revenue, just zero.

I hope that this helps. Please do not hesitate to follow up with me if I can be of any additional service,

Sincerely,
Paul Henneman
President
ValuEngine Inc