Overview
Sales Growth Index (SGI), is a core indicator used to evaluate financial condition and operating performance. Quarterly (Q) scope increases short-term volatility visibility.
Formula
Sales(current period) / Sales(prior period)
How to Interpret
High Value
When Sales Growth Index (SGI) stays high, persistence should be validated with cash and margin evidence.
Low Value
When Sales Growth Index (SGI) is low, confirm whether weakness is cyclical or structural via operating cash evidence.
Where It Is Used
Defining Sales Growth Index (SGI) alert thresholds against the company’s own historical median reduces false positives.