Percentage Changes

Percentage change shows how much a value increased or decreased relative to its starting point.

Formula:

$\text{Percentage Change}=\frac{\text{New Value}-\text{Old Value}}{\text{Old Value}}$

Interpretation:

• positive value = increase
• negative value = decrease

Example:

If revenue rises from 100 to 120, percentage change is (120 - 100) / 100 = 20%.

This is a basic tool used throughout return analysis and common-size statement analysis.