Like for Like

Like -for-like ( LFL ) is a native of the English business code. It describes adjusted for Neuakquisen or area sales growth of an occupational area and thus serves for the determination of organic growth.

Calculation and properties

The LFL growth is to make an important especially in very dynamic markets to measure growth comparable sizes ( normalize ). When considering e.g. Umsatzwachtums of a retail chain will therefore, for example, sales of temporarily closed or opened markets so charged that the relation is correct.

In assessing the growth of American companies, this figure has been used for some time, but is also used in the evaluation of German companies now attention.

Suppose there is one company A and company B. Both companies have a turnover of EUR 100 in Year 1 In year 2, Company A makes 110 euros turnover, Company B 120 EUR. However, the operator of Company A Company B has taken over the second year. A normal addition would for company A in year 2 then a turnover of EUR 230 arise because of the turnover of the company B is consolidated in this. This would be a revenue growth of 130% correspond, but this is not a reasonable comparison. Therefore, the growth variables are only normalized and then combined, which in the end results in a revenue growth of 15 % (from 200 euros to 230 euros ) in this case.