CAGR (The Compound Annual Growth Rate) is a useful metric for evaluating the average annual growth of an investment over a specified period. It represents the rate at which an investment would need to grow each year to reach its ending value, assuming the profits are reinvested at the end of each period. In a lot of financial reports, the CAGR value is extensively used to check the growth of investments and is a very important metric for interpreting the success of a business.
We can calculate CAGR between two periods in Inforiver Analytics+ using the CAGR feature.
1) In our report we go to Deviations tab -> select Customize:
2) Under Customize we have the CAGR option. We will enable this option, and we can see the settings for CAGR:
3) We can assign colors to represent positive and negative CAGR values:
4) We can plot CAGR between custom axis points by specifying the start and end index. By default, the CAGR is plotted between the first and last points by default:
However, we can customize CAGR points by going to Custom option under Value type. And selecting the points between which we want to calculate CAGR. So, in the below example I want to calculate the CAGR between Q1 and Q3, so we will choose 1 in From and 3 in To section and click Apply:
Now we can see the CAGR between Q1 and Q3:
5) We can also specify the time period for which to plot CAGR. It can be either Year/Quarter/Month/Day/Hour under the Units section:
For example, we can calculate Months:
And Quarters:
When we have non-date dimensions we can plot by Points:
6) The Analytics+ visual plots the CAGR lines based on their axis number order. So, if we apply filters on axis categories, this can lead to rendering unexpected CAGR lines and mess up the existing CAGR line. We can enable the Use id toggle if we do not want our CAGR to change dynamically when applying filters:
7) We can change the Font color of the CAGR value by disabling the Auto color and setting it ourselves and also change the font size:
8) We can set a border for the CAGR value and even customize the border color:
For example, we can choose between Border only, Background color only, and Border + background color options to highlight our CAGR values:
9) We can use either the solid, dotted, or dashed connector line options under Arrow in our CAGR line:
We can even set the thickness of the line as well:
10) We can specify an optional offset between the chart and the CAGR line for enhanced readability:
11) We can enable Number formatting to specify the decimal points in our CAGR:
FAQs:
Is the CAGR feature only available in Analytics+?
Yes, it is only available in our Analytics+ visual.
What happens when we select None option under Value type?
If we select None option, then our CAGR line goes way since we don't want it to plot between any points:
Can we add regular Deviation along with CAGR?
Yes, we can add both CAGR and Deviation in a chart.
