Now, if you see the growth rates, they are all over the place. Right from -16.67% to 28%. But you want to report a single annual growth rate. This is where CAGR (Compounded Annual Growth Rate) comes handy. Imagine that the sales of ACME Inc. grew at constant rate every year from $150 Mn in 2009 to reach the $210 Mn in 2014. This is what CAGR represents.