How to calculate Growth rate

[#1]

Hi,

How to calculate growth rate?

Scenario 1 :

EBIDTA 2012 : 350

EBIDTA 2011 : 370

Growth_rate = ((vPeriod / vPrevPeriode) -1) * 100  = ((370/ 350)-1)*100 = +5.71%

Scenario 2 :

EBIDTA 2010 : -2

EBIDTA 2011 : 350

Growth_rate = ((vPeriod / vPrevPeriode) -1) * 100  = ((350/ -2)-1)*100 = -17600 %&$ WTF

How can i calculate growth rate where the previous ( or current) period is negative?

Dror

[#2]

that is mathematic;)

we can help you if you simply tell us what value you want it to be (growth rate)

[swuehl · Accepted solution]

I would agree with this opinion, calculating percentage change with numbers having different signs is not really meaningful. But read on for some possible approaches.

Or have a look at:

http://mathematics.blurtit.com/q914612.html

(an approach which I personally wouldn't apply).

Regards,

Stefan

[#4]

Thanks!

I've eventually used the following formula:

   (nieuw – oud)__     X 100%

       fabs(Oud)

I wasn't really happy about this solution but the client was

[#5]

personalny i prefer solution that:

- if old value is below zero (EBIDTA 2010 : <0)

and new value is above zero (EBIDTA 2011 : >0)

my growth rate is allways equal 100%

but if Your client is happy... that is good;)