A measure of a company's short-term financial performance that compares the results achieved in a recent period to those of the period immediately preceding it. In financial reporting, sequential growth often compares the results between two quarters. A company might be reported to have experienced 3% sequential sales growth - this means that its revenue has increased by 3% since the previous quarter.
Taobiz explains Sequential Growth
When considering how much weight to place on reports of sequential growth , it is important to keep in mind that seasonal fluctuations often affect a company's short-term performance.
A major retailer might report 10% sequential growth in the fourth quarter, then see a relative decline in revenue in the first quarter of the following year. This would not necessarily indicate that the business is performing poorly - it could simply be the result of increased consumer spending during the holiday spending followed by a return to normal spending in the new year. It is important to look at a variety of indicators to get an accurate picture of a company’s performance.
