I'm trying to calculate the compound growth rate of operating margin, in a 5 years span:
compound growth rate = 100% * ((M1 / M2) ^ (year - 1) - 1)
M1 = current operating margin
M2 = operating margin 5 years ago
year = 5
It works fine if both M1 and M2 are positive values. However, for enterprises that went from deficit to profit, the value growth rate would be a negative value.
How should I calculate the compound growth rate then?
