zondag, januari 27, 2013

Compound Annual Growth rate in Business Objects

To calculate the Compound Annual Growth rate, Excel has a function called XIRR. BO doesn't have that, but that's easy to remedy. All you need to do, is work out the following formula:

So, now we need a bunch of numbers and see where we get:

Right -- this has everything to do with investments, something I know nothing about, but here's some numbers to get us started :

On Jan 1 2010, we invest 10000€
On Jan 1 2011, our investment has grown to 13000€
On Jan 1 2012, our investment has grown to 15000€
and
finally, On Jan 1 2013, our investment has now a value of 19500€

The table looks like this in BO:

First, we'll divide our ending value by our beginning value -- interesting challenge.

Our last date would be : =Max([Date]) In Report = 1/1/2013
Our first date would be : =Min([Date]) In Report = 1/1/2010

So, our formula for that division becomes :

=[Value] where ([Date]=Max([Date]) In Report) / [Value] where ([Date]=Min([Date]) In Report)

I'll call this one basefigure

Now, we need to find out how many years it took:

The formula for that one is rather easy :

=Year(Max([Date]) In Report) - Year(Min([Date]) In Report)

And we divide 1 by that figure:

=1/(Year(Max([Date]) In Report) - Year(Min([Date]) In Report))

this one, I'll call exponent

There. Now, the next step would be to raise our first figure to the power of that second figure and subtract 1.

=Power([Basefigure];[Exponent])-1

Our Compound Annual Growth rate would be : 0.25 -- I guess those figures occurred in a parallel universe :)

Cool

Cheers folks

Peter