The growth potential of a company can be an important consideration when making investment decisions, as it might help investors determine whether a company is likely to offer potentially higher returns in the long run. But how can we assess a company's growth potential? We can focus on the following three key indicators.

1. Revenue Growth

Revenue growth can be an important indicator of a company's performance. When assessing a company's revenue growth, here are three key considerations to keep in mind.

First, the absolute value of the growth rate. A company might look more attractive if its revenue grows more than 20% on a year-on-year basis with steady and consistent quarterly growth.

Second, the growth rate change: an increase in the growth rate over time is more ideal.

Third, industry comparison. Companies often considered to be the most appealing tend to have a higher growth rate than their peers.

2. Net Profit Growth

Net profit growth is seen by many as a key driver of a company's performance. Here again, are three considerations when analyzing this indicator. The first two are similar to those used when assessing revenue growth.

However, when looking at net profit growth, it's important to compare it with the growth rate of revenue. Ideally, the net profit growth rate should be higher than the revenue growth rate, indicating that the company is growing with increasing profitability, leading to high-quality potential growth.

3. Growth Sustainability

Growth with sustainability is more competitive, which may potentially drive the stock price upward. There are two factors to consider when analyzing growth sustainability.

First, a company with consistent revenue and net profit growth for more than five years is considered to have sustainability of growth in the past.

Second, a company's growth is more likely to be sustainable if the overall industry is expected to experience rapid expansion.

Companies that meet the two conditions above may be more competitive in growth potential and future development.