Maths question for you

Hi guys

Maths not my strong point guys,

agency makes a loss of €6500 in Jan and then makes a profit of €2500 in April.

How do you calculate the percentage increase in profit??

ney001 said:

How do you calculate the percentage increase in profit??

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Doesn't make sense to me - do you mean % change in profit/loss?

There is no increase in profit if there wasn't a profit in the first place.

percentage difference is really what I mean sorry!

I can't answer the original question because I think it's a bit of the "apples and oranges" scenario.

However, I do think that percentage increases or decreases should be viewed with a lot of caution as they can be very misleading.

Example.

Profit in Year 1 €1

Profit in Year 2 €100

% increase = 10,000% !

Now, change the profit in Year 1 to €2

The % increase is now 5,000% i.e. half that of the first case.
The actual difference in the increase in profit is only €1. ( 99 as against 100)

You cant give an answer in this scenario without knowing the turnover.

As an example ....
If the turnover was 50K, then the % loss in Jan was 13% and then the profit was 5% in April.
However, if the turnover was 20K, then the loss in Jan was 32.5% and the profit in Apr was 12.5%.