Factor | Definition | Usefulness |
---|---|---|
Annual sales | Amount of income from selling goods or providing services during 1 year | One of the representative indicators for the market size of industry |
Three-firm concentration ratio (CR3) | Total market share (%) of top three companies | Evidence for the degree of market concentration |
Herfindahl-Hirschman Index (HHI) | Sum of squared value of market share percentage | Evidence for the degree of market concentration |
Compound Annual Growth Rate (CAGR) of sales | Mean annual growth rate of sales over a specified period of time | Evidence for the growth potential of industry |