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Calculating Compounded Growth & the XIRR Function

  1. #1
    SJT
    Guest

    Calculating Compounded Growth & the XIRR Function

    I have a series of all positive numbers for which I would like to calculate
    the compounded growth rate per period. However the XIRR function requires at
    least one positive and one negative value. Is there an alternative that will
    allow me to calculate the compounded growth rate using all positive values?
    Thank you in advance for your cooperation.



  2. #2
    Fred Smith
    Guest

    Re: Calculating Compounded Growth & the XIRR Function

    No.

    All rate of return calculations need at least one positive and one negative
    number. If you are dealing with starting and ending values (eg, invested $1000,
    got back $1200), you just change the sign on one of them to get the return
    calculated.

    To help you further, we need to know what the 'positive numbers' represent. Are
    they cash flows, period ending values, or periodic returns?

    --
    Regards,
    Fred


    "SJT" <SJT@discussions.microsoft.com> wrote in message
    news:57925AA9-964B-49C0-9C93-E26DD5456040@microsoft.com...
    >I have a series of all positive numbers for which I would like to calculate
    > the compounded growth rate per period. However the XIRR function requires at
    > least one positive and one negative value. Is there an alternative that will
    > allow me to calculate the compounded growth rate using all positive values?
    > Thank you in advance for your cooperation.
    >
    >




  3. #3
    SJT
    Guest

    Re: Calculating Compounded Growth & the XIRR Function

    They are monthly revenues. Thank you for your assistance.

    "Fred Smith" wrote:

    > No.
    >
    > All rate of return calculations need at least one positive and one negative
    > number. If you are dealing with starting and ending values (eg, invested $1000,
    > got back $1200), you just change the sign on one of them to get the return
    > calculated.
    >
    > To help you further, we need to know what the 'positive numbers' represent. Are
    > they cash flows, period ending values, or periodic returns?
    >
    > --
    > Regards,
    > Fred
    >
    >
    > "SJT" <SJT@discussions.microsoft.com> wrote in message
    > news:57925AA9-964B-49C0-9C93-E26DD5456040@microsoft.com...
    > >I have a series of all positive numbers for which I would like to calculate
    > > the compounded growth rate per period. However the XIRR function requires at
    > > least one positive and one negative value. Is there an alternative that will
    > > allow me to calculate the compounded growth rate using all positive values?
    > > Thank you in advance for your cooperation.
    > >
    > >

    >
    >
    >


  4. #4
    Fred Smith
    Guest

    Re: Calculating Compounded Growth & the XIRR Function

    OK. Presumably at the end of the period, the revenues have grown to some final
    figure. You would create a table of the revenues in one column, and the
    corresponding date in another. The last entry would be the value the revenues
    have grown to (as a negative number), and the valuation date.

    Feed these two ranges to XIRR, and it will calculate the rate of return for you.

    --
    Regards,
    Fred


    "SJT" <SJT@discussions.microsoft.com> wrote in message
    news:CD210F8F-0A61-494B-B223-7BFFEC15C942@microsoft.com...
    > They are monthly revenues. Thank you for your assistance.
    >
    > "Fred Smith" wrote:
    >
    >> No.
    >>
    >> All rate of return calculations need at least one positive and one negative
    >> number. If you are dealing with starting and ending values (eg, invested
    >> $1000,
    >> got back $1200), you just change the sign on one of them to get the return
    >> calculated.
    >>
    >> To help you further, we need to know what the 'positive numbers' represent.
    >> Are
    >> they cash flows, period ending values, or periodic returns?
    >>
    >> --
    >> Regards,
    >> Fred
    >>
    >>
    >> "SJT" <SJT@discussions.microsoft.com> wrote in message
    >> news:57925AA9-964B-49C0-9C93-E26DD5456040@microsoft.com...
    >> >I have a series of all positive numbers for which I would like to calculate
    >> > the compounded growth rate per period. However the XIRR function requires
    >> > at
    >> > least one positive and one negative value. Is there an alternative that
    >> > will
    >> > allow me to calculate the compounded growth rate using all positive values?
    >> > Thank you in advance for your cooperation.
    >> >
    >> >

    >>
    >>
    >>




  5. #5
    SJT
    Guest

    Re: Calculating Compounded Growth & the XIRR Function

    Thank you very much for your assistance.

    "Fred Smith" wrote:

    > OK. Presumably at the end of the period, the revenues have grown to some final
    > figure. You would create a table of the revenues in one column, and the
    > corresponding date in another. The last entry would be the value the revenues
    > have grown to (as a negative number), and the valuation date.
    >
    > Feed these two ranges to XIRR, and it will calculate the rate of return for you.
    >
    > --
    > Regards,
    > Fred
    >
    >
    > "SJT" <SJT@discussions.microsoft.com> wrote in message
    > news:CD210F8F-0A61-494B-B223-7BFFEC15C942@microsoft.com...
    > > They are monthly revenues. Thank you for your assistance.
    > >
    > > "Fred Smith" wrote:
    > >
    > >> No.
    > >>
    > >> All rate of return calculations need at least one positive and one negative
    > >> number. If you are dealing with starting and ending values (eg, invested
    > >> $1000,
    > >> got back $1200), you just change the sign on one of them to get the return
    > >> calculated.
    > >>
    > >> To help you further, we need to know what the 'positive numbers' represent.
    > >> Are
    > >> they cash flows, period ending values, or periodic returns?
    > >>
    > >> --
    > >> Regards,
    > >> Fred
    > >>
    > >>
    > >> "SJT" <SJT@discussions.microsoft.com> wrote in message
    > >> news:57925AA9-964B-49C0-9C93-E26DD5456040@microsoft.com...
    > >> >I have a series of all positive numbers for which I would like to calculate
    > >> > the compounded growth rate per period. However the XIRR function requires
    > >> > at
    > >> > least one positive and one negative value. Is there an alternative that
    > >> > will
    > >> > allow me to calculate the compounded growth rate using all positive values?
    > >> > Thank you in advance for your cooperation.
    > >> >
    > >> >
    > >>
    > >>
    > >>

    >
    >
    >


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