Compound annual growth
rate (CAGR) is an investing and business term for the effective constant
year-over-year rate of return that produces a target result value
at the end of multiple years, assuming that the CAGR is compounded
at the end of each year. For example, you might use CAGR to compare
trends over multiple years in revenue or in the number of units sold.
For SAS Visual Analytics, you can calculate the yearly CAGR using
the expression builder.
This example compares
trends in the growth rate for yearly sales amounts between different
product types or regions.
The basic
data items are:
sales
This is a numeric measure with a currency
format and a default aggregation of Sum.
RegionName
This is a string category data item.
TransactionDate
This is a date
data item with a format of Month, Day, Year (MMDDYYYY).
The
calculated data items are:
BeginningYearNum
This data item should be a numeric type with a Float4.0
format and an aggregation of Minimum.
BeginningYearNum
= Year('31DEC2010'd)
EndingYearNum
This data item should be a numeric type with a Float4.0
format and an aggregation of Minimum.
EndingYearNum
= Year(‘transactionDate’n)
The
aggregated measure data items are:
NumYears
This data item has a Float4.0
format.
NumYears
= Min [_ByGroup_] ('EndingYearNum'n) - Min [_ByGroup_] ('BeginningYearNum'n)
BeginningValue
This data item needs to be set to the same currency format as the sales
data
item.
BeginningValue
= PeriodWithDate(_Sum_, 'sales'n, 'transactionDate'n, _ByYear_, '31DEC2010'd)
EndingValue
This data item needs to be set to the same currency format as the sales
data
item.
EndingValue
= Period(_Sum_, 'sales'n, 'transactionDate'n, _ByYear_)
NormalizedRatio
This data item has a Float12.2
format.
NormalizedRatio
= 'EndingValue'n / 'BeginningValue'n
CAGR
This data item has a Percent
format.
CAGR =
('NormalizedRatio'n Power ( 1 / 'NumYears'n ) ) – 1
To use the CAGR, you
should add
TransactionDateYear
,
CAGR
,
and any other categories of interest (for example,
RegionName
,
ProductType
, and so on) to a list table, a
crosstab, or a graph.