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Compound Annual Growth Rate Function

Overview: In this tutorial you learn how you can calculate Compound Annual Growth Rate function in SAC using CAGR() function in sap analytics cloud.

CAGR() Function

CAGR function is used to calculate the annual growth rate over a specified period of time meaning it should be specify for 1 year, 2 year or 3 year, but it should be longer then longer than one year. And based on that it will calculate the annual growth rate for that year for selected account or measures

From many SAP analytics cloud functions, the Compound Annual Growth Rate Function in SAC can can only be use in Modeler.

Syntax:

CAGR ( [account member], start year , end year )

so in above syntax:

Account member: This is selected measures and account from the dataset

Strat Year: The beginning of year from which it will start counting the year

End year: This is last end year.

The numeric year enclosed with quotation marks like “2019”,

If year is a variable the it should be enclosed in brackets with apostrophes like [‘year1’]

Note:

The start year should be always less than or equal to the end year.

Lets take example

Example: Annual Growth Rate Calculation

Now we have used Revenue account to calculate Annual Growth Rate as shown below example formula

CAGR ( [TotalRevenue], “2018”, “2020” )

The above function will return the Compound Annual Growth Rate of the account TotalRevenue over the two year period from end 2018 to the end of 2020. It always thart counting year from end of the year with first mentioned year, like in above case it is 2018.

Another example

CAGR ( [TotalProfit], “2015”, “2018” )


The above example it will return the Compound Annual Growth Rate TotalProfit over the three year period, it start counting from end 2015 year to the end of 2018 year.

the above function is not available in formula box in story of SAC, so you can only use it in SAP analytics cloud modeler when doing your modeling of data set.