Instruction

1

To calculate the percentage growth, we need to know the following information: the value of financial indicators in the past period, its digital expression in the following period. Divide the number corresponding to the value in later time period, the index of the previous period. Multiply the resulting value by 100%.

2

Carry out such calculations according to the General formula:

growth=(Index current period/previous period)×100%.

For example, the company's revenue in 2010 amounted to 50 million rubles, and in 2011 - 60 million rubles. In this case, the increase was 120%. Please note that this is growth. To find growth, you need growth to subtract 100%. Thus, the revenue growth in 2011 relative to 2010 was 20%.

The General formula for gain is:

growth=(Index current period/previous period)×100% -100%=((Index current period/previous period)-1)×100%.

growth=(Index current period/previous period)×100%.

For example, the company's revenue in 2010 amounted to 50 million rubles, and in 2011 - 60 million rubles. In this case, the increase was 120%. Please note that this is growth. To find growth, you need growth to subtract 100%. Thus, the revenue growth in 2011 relative to 2010 was 20%.

The General formula for gain is:

growth=(Index current period/previous period)×100% -100%=((Index current period/previous period)-1)×100%.

3

Remember that growth can be both positive and negative. In order to test yourself, compare the indicators that you operate in determining growth. If the indicator of the new period is less than its value in the last period, the increase will be less than 100%, which means growth will be less than zero. In financial terms this suggests that the revenue, profit, cost has decreased over time.

4

Use the calculation of growth rates in order to compare values of financial or other units for similar periods in different years. For example, compare the collection rate of insurance premiums in the corresponding quarters of different years or profit in the month of may last and this year. In this case, the rate of growth will give you the opportunity to assess how may of this year has developed better (or worse, if the increment is negative) to the enterprise than may of last year.