Like for like
Like-for-like ( LFL ) is one of the English -derived economic indicator . It describes the growth of an operational area adjusted for new acquisitions or divestments and thus serves to determine the organic growth .
Calculation and properties
The LFL growth is a particularly important key figure in very dynamic markets to make growth variables comparable (normalize). When considering z. B. the sales growth of a retail chain, for example, the sales of meanwhile closed or newly opened stores are offset in such a way that the relationship is correct.
This key figure has been used for some time when assessing the growth of American companies, but is now also attracting attention when assessing German companies.
Assume there is a company A and a company B. Both companies have a turnover of EUR 100 in year 1. In year 2, company A has a turnover of 110 euros, company B 120 euros. However, the operator of company A took over company B in the second year. A normal addition would then result in sales of EUR 230 for company A in year 2, since the sales of company B are consolidated in this. This would correspond to a sales growth of 130%, which is not a reasonable benchmark. Therefore, the growth figures are first standardized and then summarized, which ultimately results in a sales growth of 15% (from 200 euros to 230 euros) in the present case.
Individual evidence
- ↑ http://moneyterms.co.uk/lfl/
- ↑ Sample report on developments at HeidelbergCement (PDF; 647 kB)
- ↑ Sample report on developments at MAN AG ( page no longer available , search in web archives ) Info: The link was automatically marked as defective. Please check the link according to the instructions and then remove this notice.
