Dave's ESL Cafe's Student Discussion Forums

[keira]

Hi everyone

what is "underlying" in "underlying revenue growth," "underlying sales growth", etc. ?

thank you.

[scottish_tiger]

Both these phrases are used in terms of company annual accounts (or you may come across them if you are studying economics). I am sorry about the way my definitions are written, but there is no simple way to describe these phrases, but I will think about it more & try to simplify it for you, if you wish.

Underlying revenue growth provides a consistent year on year measurement of business performance. This is achieved by removing the effect on the businesses performance that may have been caused by foreign currency exchange rates and the cost of any business assets that have been bought or sold in the financial year.

Underlying sales growth is used to show the impact of sales volumes and selling price. Companies use this measurement to analyse sales in a number of ways but, most often, it is used to demonstrate underlying growth by products and groups of products, and by countries and regions.

I hope that will offer a little help, if you have any other questions then you can post them here or PM me and I will try to help further (been a long time since I studied economics hahahahaha )

Scottish Tiger
_________________
I am always happy to help you learn English.

[keira]

Scottish Tiger

Thank you very much.
That really helped! I think this is enough information for me.

kaira

[scottish_tiger]

No problem, glad to help Keira. Was a little concerned that the language in my definitions was a little technical, especially if you are unfamiliar with accounting & economic termonology.

Scottish Tiger
_________________
I am always happy to help you learn English.