Which metric is likely to show management’s perspective on future performance?

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Revenue growth is an important metric that typically reflects management's perspective on future performance. It indicates the increase in a company’s revenue over a specified period and is often a key focus for management when strategizing for the future. A strong revenue growth trajectory can signify that management is successfully executing their business strategy, expanding their market share, or effectively responding to customer needs and market demands.

While other options like EBITDA and customer retention rate are significant in evaluating current performance and operational efficiency, they do not necessarily provide a direct insight into future expectations. EBITDA reflects earnings before interest, taxes, depreciation, and amortization, focusing more on operational profitability rather than future sales potential. Customer retention rate signifies customer satisfaction and loyalty but does not explicitly indicate how revenue may change in the future. Market volatility, on the other hand, is more of an external factor that can impact business performance rather than a measure of management’s expectations or strategies for growth. Therefore, revenue growth is the most indicative of management’s outlook on future performance, showcasing their potential to increase sales and expand the business.

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