You will need

- Calculator, data on the dynamics of production of the analyzed company.

Instruction

1

Determine the rate of absolute increase on a basic basis as the difference between the current and the initial level of the series by the formula:

Δi = yi – yo,

where yi is the current value of number,

yo is the initial level of the series.

Example:

In 1997, produced goods to 10 million tons in 1998 to 12 million tons, in 1999 - 16 million tons, in 2000 - 14 million tons.

Δi = 12 - 10 = 2 million tons

Δi = 16 - 10 = 6 million tonnes.

Δi = 14 - 10 = 4 million tons.

Δi = yi – yo,

where yi is the current value of number,

yo is the initial level of the series.

Example:

In 1997, produced goods to 10 million tons in 1998 to 12 million tons, in 1999 - 16 million tons, in 2000 - 14 million tons.

Δi = 12 - 10 = 2 million tons

Δi = 16 - 10 = 6 million tonnes.

Δi = 14 - 10 = 4 million tons.

2

Calculate the rate of absolute increase on a chain basis as the difference between the current and previous level number according to the formula:

Δi = yi – yi-1,

where yi is the current value of number,

yi-1 - previous level.

Example:

In 1997, produced goods to 10 million tons in 1998 to 12 million tons, in 1999 - 16 million tons, in 2000 - 14 million tons.

Δi = 12 - 10 = 2 million tons

Δi = 16 - 12 = 4 million tons.

Δi = 14 - 16 = -2 million tons.

Δi = yi – yi-1,

where yi is the current value of number,

yi-1 - previous level.

Example:

In 1997, produced goods to 10 million tons in 1998 to 12 million tons, in 1999 - 16 million tons, in 2000 - 14 million tons.

Δi = 12 - 10 = 2 million tons

Δi = 16 - 12 = 4 million tons.

Δi = 14 - 16 = -2 million tons.

3

Calculate the average of the absolute gain according to the formula:

_

Δ = yn – y1/n-1,

where y1 is the first level of the series,

n is the number of levels of a number,

yn - the final level of the series.

Example:

In 1997, produced goods to 10 million tons in 1998 to 12 million tons, in 1999 - 16 million tons, in 2000 - 14 million tons.

_

Δ = 14-10/4-1 = 1,3 million tons

_

Δ = yn – y1/n-1,

where y1 is the first level of the series,

n is the number of levels of a number,

yn - the final level of the series.

Example:

In 1997, produced goods to 10 million tons in 1998 to 12 million tons, in 1999 - 16 million tons, in 2000 - 14 million tons.

_

Δ = 14-10/4-1 = 1,3 million tons

Note

The calculation of the average of the absolute growth it is necessary to summarize the results of the development of phenomena over a single interval or time of the available time series.

Useful advice

Performance indicators are calculated on base and chain-based. Basic indicators of the dynamics is obtained by comparison of the levels of the series with the same original level. Chain performance indicators are obtained by comparing each row with the previous one.

# Advice 2 : How to calculate absolute increase

To determine the intensity of changes in any of the indicators over a certain period of time is used set of characteristics, which are obtained by comparing several levels of indicators measured on different levels of the timeline. Depending on how it compares measured values between obtained characteristics are referred to as growth coefficient, growth rate, growth rate, absolute increase, or an absolute value of 1% growth.

Instruction

1

Determine what kind of indicators and how it is necessary to compare among themselves to obtain the desired value of the absolute gain. Assume that this feature should show the absolute rate of change of the studied indicator, and calculated as the difference between the current level and the level taken for the base.

2

Subtract from the current value of the examined indicator of its value measured at the point of the timeline, which is taken as the base. For example, assume that the number of workers employed in manufacturing at the beginning of this month is 1549, and at the beginning of the year, which is considered the reference period, it was equal to 1200 employees. In this case, the absolute increase for the period from the beginning of the year at the beginning of the current month amounted to 349 units, as 1549-1200=349.

3

If you not only need to calculate this figure for the last one period, but also to determine the average value of the absolute growth for several periods, it is necessary to calculate this value for each time stamp in relation to the previous one, then add up the values and divide them by the number of periods. For example, suppose you want to calculate the average value of the absolute increase in the number employed for the production of staff months of the current year. In this case, subtract the value of the indicator at the beginning of February, the appropriate value for the beginning of January, then do the same operation for couples March/February, April/March, etc. After this, add these values and divide the result by the sequence number of the last involved in the calculation of the months of the year.

# Advice 3 : How to find growth rate

In order to calculate the growth rate for any financial measure, it is enough to know its numeric expression in different moments of time and be able to apply a simple formula.

Instruction

1

Select financial indicators, growth rate of which you need to calculate. Remember that the rate of increase shows in what direction has changed over time, so you need to know two values, for example, the amount of gross revenue 2010 and 2011.

2

Calculate the rate of growth. To do this, divide the figure for the new period than last period. From this value subtract 1, multiply by 100%. For gross revenue formula as follows:

(Gross sales 2011/gross sales 2010-1)*100%.

(Gross sales 2011/gross sales 2010-1)*100%.

3

Don't confuse growth rate with the growth rate last calculated by the formula:

(Gross sales 2011/gross sales 2010)*100%.

Growth rate always has a positive sign, even in those cases, if, for example, gross revenue (or any other financial index) has fallen from 100 conditional rubles in 2010 to 50 in 2011. The calculated growth rate is 50%, and increase to 50%.

(Gross sales 2011/gross sales 2010)*100%.

Growth rate always has a positive sign, even in those cases, if, for example, gross revenue (or any other financial index) has fallen from 100 conditional rubles in 2010 to 50 in 2011. The calculated growth rate is 50%, and increase to 50%.

4

Check out for yourself. Before the counting of growth rates compare between the financial performance of the two periods. If the data for the earlier period more than the later, there is a real reduction in the value of interest, the growth rate will be negative. On the contrary, if the indicator grew over time, so the growth rate will have a positive sign.

5

Please note that you can use the growth rate not only in cases where there are two time-sequential values of one financial indicator. Calculation of growth rates and growth is also underway to compare data for a specific period of one year, for example, month or quarter, with data of the same period of the previous year. It is possible to see an increase in gross revenue of Oct 2011 compared with the amount of the gross proceeds of the October 2010.

# Advice 4 : How to calculate growth rate

**The coefficients**

**of growth**of population are important indicators for the calculation of demographic statistics. These data are based on information recorded in the regular census of citizens, and demonstrate natural and mechanical growth of the population.

Instruction

1

The magnitude

**of increase**of population is calculated as the difference between the two measures at the beginning and end of the billing period. The ratio**of increase**of population is a value equal to the ratio**of growth**of the population to the average annual number. The total number of people in the country is an absolute value and is only an additional informative as other common indicators, such as number of births or the number of deaths.2

**The coefficients**

**of increment**are relative values, they have no dimensions and are used in a comparative analysis to identify the population at large. They are called relative because they represent a ratio, fraction one absolute value to another.

3

The overall rate

**of growth**of population is equal to the sum of two values: the natural and migration factors**of growth**. Natural population growth is the difference between the number of births and deaths of people during a certain period. For the coefficient this value is divided by the average number.4

Migration increase – the difference between the number of arrivals in a country of people from other countries and the number departing for permanent residence in another state. The rate of migration

**growth**is also referred to as mechanical, it is equal to the ratio describes the difference to the average population.5

The average number of the population conventionally accepted value, which is equal to the sum of population at the beginning of the year and at the end of the year. This assumes that the number of residents during the year grows evenly.

6

The rate of natural

**increase**of the population, usually expressed per 1000 people per year and is the most significant characteristic of the population growth rate.7

Based on the General ratio

**of increase in**population is projected prospective population for future periods, which implies the preservation of the patterns of growth that are defined on the calculated time interval.# Advice 5 : How to calculate growth rate

Changes in the economic situation of the organization must be characterized using techniques and methods of statistics. Using the series you can see how phenomena change over time. Performance level changes over time are calculated such indicators as the absolute growth, growth rate and growth rate.

Instruction

1

Calculate the absolute gain of the selected quantity over a certain period of time. To do this, calculate the difference between the initial and final level according to the formula Δ U= U2-U1, where U1 is the initial level value, U2 - the ultimate level. Absolute growth characterizes how many units of value in the subsequent period is more or less than its level in the previous period.

2

Determine the growth rate of this magnitude for the period. To do this, find the ratio of its level in the period to the level in the previous period according to the formula K= Y2/ Y1 × 100%, where Y1 is the initial level value, U2 - the ultimate level. This index describes how many times the value in one period is greater or less than the value in another period.

3

Find the growth rate of this magnitude by calculating the ratio of the absolute growth to the level taken as a base of comparison. The base of comparison can be constant and variable. When comparing the current level with the previous calculated chain growth rate, and the comparison with an initial indicator (base) - base.

4

Calculate the chain growth rate by the formula CRC = (U - U-1) / U-1, where U - level values in the current period, U-1 - level value in the previous period.

Determine the base rate of growth by the formula CRC = (Yn-Y1) / Y1, where Yn - level values in the current period, U1 is the initial level value.

Determine the base rate of growth by the formula CRC = (Yn-Y1) / Y1, where Yn - level values in the current period, U1 is the initial level value.

5

Determine the rate of change of the index for the entire period. To do this, calculate the average growth rate according to the following formula

K = n-1 √ Yn/Y1, where n is the number of periods changes, the UE - leaf level value, Y1 is the initial level. To calculate the average rate of growth of the need of resulting numbers subtract one and multiply the result by 100%.

K = n-1 √ Yn/Y1, where n is the number of periods changes, the UE - leaf level value, Y1 is the initial level. To calculate the average rate of growth of the need of resulting numbers subtract one and multiply the result by 100%.

6

Consider as an example the calculation of the average growth rate of earnings for the year provided that at the beginning of the year it amounted to 100 thousand rubles, and at the end of the year 300 thousand rubles. Calculate the rate of profit growth: 300/100 = 3. That is, the profit for the year increased by 3 times.

7

Find the root of the number 3 in degrees 11, the result is equal to 1,105. Subtract from the resulting number of unit and multiply by 100%. So, the average growth rate of earnings per month will be equal to 10.5%.