% Change

megamuel

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Hi guys I need some help with some research I am doing. I am sure there are some maths gurus here that can help me! Ok, what I need to know is.... If a company goes from a 1345 m loss one year to a 2221 m profit the next year. What percentage change is that??? Thanks,

Sam.
 
You cn't do that. You'd have to talk about the change in % of the income or whatever lead to the turnaround
 
Alternatively you could say that the loss of 1345m to breakeven in one year is 100% as your denominator i.e. breakeven =100%, 1345m profit =200%, 2690m profit=300%
 
That sucks. In that case, is there any other way I can find the average percentage change in the profits of Rolls Royce: £347m, £600m, £994m, -£1345m, £2221m ?
 
I'd put it 265% as well, but,

"way I can find the average percentage change in the profits of Rolls Royce: £347m, £600m, £994m, -£1345m, £2221m ? "

I can't guess as to why you would want the "average %age change" as it would be totally meaningless with such wide variations over such a small sample size.
 
2221=347+(1+g)^4
6.40057636887608=(1+g)^4
6.40057636887608^(1/4)=1+g
1.59057726642606=1+g
g=.59057726642606

av growth rate of profit 59.057726642606% over the 4 yrs if thats any help

Why you looking for thjat by the way? Looks to me like the they must have slung some capital assets to generate that kind of return :S
 
Last edited:
Why you looking for thjat by the way? Looks to me like the they must have slung some capital assets to generate that kind of return :S

Prolly thinking of pretty girls instead of concentrating on the job at hand !!!

:LOL:
 
2221=347+(1+g)^4
6.40057636887608=(1+g)^4
6.40057636887608^(1/4)=1+g
1.59057726642606=1+g
g=.59057726642606

av growth rate of profit 59.057726642606% over the 4 yrs if thats any help

Why you looking for thjat by the way? Looks to me like the they must have slung some capital assets to generate that kind of return :S

I have NO idea what all those workings mean but I will take your word for it that its 59.06% average growth and thank you very much for working that out for me. Appreciate that. I'm looking at it because I have an idea for a graph that will show numerous companies growth, value, profitability, and equity all on one graph. Its kinda hard to explain but I will post a picture when its done. I am currently paying some Indian dude (slave labour) to program it for me!

As for the Rolls Royce example, yeah it would make sense if they'd have sold off some assets looking at those figures but I checked their data and their assets actually went up and liabilites went down. So maybe I am missing something.. But thats irrelevant anyway.

Thanks again,

Sam.
 
Give the Indian an extra few £ for my contribution

Hurry up with the charts then
 

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Give the Indian an extra few £ for my contribution

Hurry up with the charts then

My excel is playing up. Well..... It won't let me enter values because I haven't paid for it! But I appreciate your efforts non the less!

Sam.
 
waw,so many maths gurus here, i hate maths when i was a student,so my maths is always very bad. glad so many people here can help you.
 
For the original question, you're working from a loss position and thus would talk about the %age change to a LOSS ie: a 265% decrease in the loss.
 
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