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Hi,

I'm wondering how to calculate the profit changes if it from negative to positive.

For example, if the profit is $-7000 in year 2020 and $+700 in year 2021,the profit changes is  [700-(-7000)]/(-7000)*100%=110% ? or 210%?

Are there some methodology to follow in this situation.

Best Regard

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Hi,

I'm wondering how to calculate the profit changes if it from negative to positive.

For example, if the profit is $-7000 in year 2020 and $+700 in year 2021,the profit changes is  [700-(-7000)]/(-7000)*100%=110% ? or 210%?

Are there some methodology to follow in this situation.

Best Regard

Hi,

I'm wondering how to calculate the profit changes if it from negative to positive.

For example, if the profit is $-7000 in year 2020 and $+700 in year 2021,the profit changes is  [700-(-7000)]/(-7000)*100%=110% ? or 210%?

Are there some methodology to follow in this situation.

Best Regard

Hi,

I'm wondering how to calculate the profit changes if it from negative to positive.

For example, if the profit is $-7000 in year 2020 and $+700 in year 2021,the profit changes is  [700-(-7000)]/(-7000)*100%=110% ? or 210%?

Are there some methodology to follow in this situation.

Best Regard

Hi,

I'm wondering how to calculate the profit changes if it from negative to positive.

For example, if the profit is $-7000 in year 2020 and $+700 in year 2021,the profit changes is  [700-(-7000)]/(-7000)*100%=110% ? or 210%?

Are there some methodology to follow in this situation.

Best Regard

I agree with this approach, mainly because any  number like 110% or -110% would be a reasonable number if you had made profit last year.  Many presentations don't explicitly show the prior year results, but only show year-over-year results, and a definitive percentage could be mis-interpreted.  

At my companies, we used both N/A (not applicable) or n/m (not meaningful) for such considerations where prior year information was negative. 

Hi,

I'm wondering how to calculate the profit changes if it from negative to positive.

For example, if the profit is $-7000 in year 2020 and $+700 in year 2021,the profit changes is  [700-(-7000)]/(-7000)*100%=110% ? or 210%?

Are there some methodology to follow in this situation.

Best Regard

Hi,

I'm wondering how to calculate the profit changes if it from negative to positive.

For example, if the profit is $-7000 in year 2020 and $+700 in year 2021,the profit changes is  [700-(-7000)]/(-7000)*100%=110% ? or 210%?

Are there some methodology to follow in this situation.

Best Regard

Actually, there isn't a meaningful percentage change that can be computed going from a negative to a positive number (or vice-versa). The math just wouldn't make sense. In your example, the profit is going from -$7000 to $700 and you're wondering if the profit change is represented by either 110% ? or 210%. What if profit went from $70 to $700? That percentage change would accurately be computed as (700-70)/70 = 900%. Note this accurate 900% change is far more than the 110% or 210% that you're exploring based on a MUCH more significant change in profit. I know it seems like a percentage change in your example "should" work when the profit is increasing by $7700 on -$7000, but the math simply isn't possible.  

Hi,

I'm wondering how to calculate the profit changes if it from negative to positive.

For example, if the profit is $-7000 in year 2020 and $+700 in year 2021,the profit changes is  [700-(-7000)]/(-7000)*100%=110% ? or 210%?

Are there some methodology to follow in this situation.

Best Regard

Hi,

I'm wondering how to calculate the profit changes if it from negative to positive.

For example, if the profit is $-7000 in year 2020 and $+700 in year 2021,the profit changes is  [700-(-7000)]/(-7000)*100%=110% ? or 210%?

Are there some methodology to follow in this situation.

Best Regard