USA % Change in Net Income


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If year one is a negative value (a loss), let's say -$90,000 and year two is a gain of let's say $100,000. To find the percentage increase between years, we take year 2 - year 1 divided by year 1 times 100, right? That technically works out to -211.11% but it's obviously a gain. This poses an interesting question: Use the same scenario with year 1 losing -$20,000 and year 2 gaining $100,000. A difference of only $120k, yet the percentage arrived at is a whopping 600%.

Maybe I'm too tired, but I think you can't present a net income change in the above scenario as a %. Any thoughts on this greatly appreciated.

Sincerely,
Confused
 
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kirby

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In those conditions you can show "nm" instead of the percentage. NM standing for "not meaningful"
 
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Samir

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Percentage changes are a relative measurement, so they should be an integer vs a negative integer. Use the absolute value of the percentage as the percentage difference is correct, negative or not.
 

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