calculating percentages

[Guest]

hi all

Quick question........

If my company made £10,000 last year and only £7,500 this year, how do I
work out what percentage the revenue has decreased by, using these two
figures???

Thank you.

Louise

 

[PC]

You find the difference between the two numbers and divide by the base.

or

Divide the ending figure by the beginning figure and subtract 1

Your choice really

 

[Guest]

Thank you.

Louise

You find the difference between the two numbers and divide by the base.

or

Divide the ending figure by the beginning figure and subtract 1

Your choice really

 

[Guest]

Just out of interest, what does the -1 do to the calculation??? what does it
represent??

THanks again.

Louise

 

[joeu2004]

Just out of interest, what does the -1 do to the calculation???
what does it represent??

The two methods are the same algebraically.

(7500 / 10000) - 1 = (7500 - 10000) / 10000

In general, the percentage difference is the difference
(later number minus earlier number) divided by the earlier
number.