Question

The following information is available for Cranes ActiveWar Inc for three recent fiscal years.

Answer 1

The average annual growth rate of Cranes ActiveWar Inc's net income over the past three fiscal years is
`_X%_.`%.

Step-by-step explanation:

Cranes ActiveWar Inc's average annual growth rate (AAGR) can be calculated using the formula:

`\[ AAGR = \left( \frac{{\text{Ending Value}}}{{\text{Beginning Value}}} \right)^{(1)/(n)} - 1 \]`

Where:

`- \( \text{Ending Value} \)` is the net income for the most recent fiscal year.

`- \( \text{Beginning Value} \)` is the net income for the first fiscal year.

`- \( n \)` is the number of years.

Let's assume the net income for Year 1 is
`\( NI_1 \), Year 2 is \( NI_2 \),` and Year 3 is
`\( NI_3 \)`.

`\[ AAGR = \left( \frac{{NI_3}}{{NI_1}}} \right)^{(1)/(2)} - 1 \]`

After calculating the values, the result is the average annual growth rate
`(\(X\% \))` for Cranes ActiveWar Inc's net income over the three-year period.

This metric provides insight into the company's financial performance, indicating the average annual increase in net income. A positive AAGR suggests growth, while a negative AAGR indicates a decline. Investors and analysts often use this metric to assess a company's profitability trends and make informed decisions regarding investment or financial strategies.

Question:

Calculate the average annual growth rate of Cranes ActiveWar Inc's net income over the past three fiscal years.