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PROJECT 23Beginner

CAGR and Growth Analysis

Business scenario

Investor relations wants growth figures for an investor presentation.

Problem statement

Compute CAGR and annual growth by category and channel, and explain why CAGR can mislead.

Learning objectives

  • Compute CAGR correctly
  • Compare with average annual growth
  • Explain limitations

Instructions

CAGR = (end ÷ start)^(1 ÷ years) − 1, where years = number of periods between start and end (2023 → 2025 = 2).

Tasks

  1. Annual revenue by category and channel 2023–2025.
  2. YoY growth and CAGR.
  3. Show an example where CAGR hides volatility.
  4. Investor-ready table with notes.

Deliverables

  • Workbook
  • Table with notes

Evaluation rubric

CriterionWeightExcellentProficientDevelopingInsufficient
CAGR correctness35%Correct periods and formula.Correct and complete with minor gaps in rigour or presentation.Partly correct; important steps missing, unvalidated or unclear.Missing, incorrect, or not supported by the data.
Data preparation & validation20%Correct filters and grain; validation checks documented and totals reconciled.Correct and complete with minor gaps in rigour or presentation.Partly correct; important steps missing, unvalidated or unclear.Missing, incorrect, or not supported by the data.
Limitations15%Volatility and endpoint sensitivity explained.Correct and complete with minor gaps in rigour or presentation.Partly correct; important steps missing, unvalidated or unclear.Missing, incorrect, or not supported by the data.
Communication15%Investor-ready.Correct and complete with minor gaps in rigour or presentation.Partly correct; important steps missing, unvalidated or unclear.Missing, incorrect, or not supported by the data.
Presentation15%Concise, well-labelled outputs a manager can act on without explanation.Correct and complete with minor gaps in rigour or presentation.Partly correct; important steps missing, unvalidated or unclear.Missing, incorrect, or not supported by the data.