The relative decrease change. Definition:
The relative decrease change is the difference in an indicator over two periods in time, v1 - v2, relative to the value of the indicator in the earlier period, v1.
- Where:
- v1 - is called the reference value (original, initial number);
- v2 - is called the new value (the end value).
- In our case: v1 = 492,240.61, v2 = 168,472.6.
The relative decrease change. Formula:
The relative decrease change =
The actual change / |v1|
(v1 - v2) / |v1| =
- Legend:
- v1 - the original number
- |v1| - the positive value of v1, |v1| >= 0. By example: |10| = 10; |-10| = 10.
- v2 - the new value
- The actual change = v1 - v2
- / - the fraction bar (division)
Why do we use |v1| in the formula instead of v1?
- Let's see what happens if we use v1 instead of |v1|:
- Choose a random negative number as the initial value: - 92.
- Choose a random positive number for the end value: 51.
Formula and calculation:
(v1 - v2) / v1 =
(- 92 - 51) / - 92 =
-143 / - 92 ≈
1.554347826087 ≈
1.55
Although the absolute difference is negative: -143, the relative decrease change is positive: 1.55. By using |v1| instead of v1, the error is corrected.
The relative percent decrease change. Detailed calculations below
By multiplying a number by the fraction 100/100,
we change only the form of the result, not the result.
- 100/100 = 100% = 100 ÷ 100 = 1.
- n × 100/100 = (n × 100)/100 = (n × 100)%, any number.
The relative percent decrease change. Formula:
The relative percent decrease change =
The relative decrease change × 100/100 =
(The relative decrease change × 100)/100 =
(The relative decrease change × 100)%
Calculate the relative percent decrease change:
(492,240.61 - 168,472.6)/|492,240.61| =
323,768.01/492,240.61 =
323,768.01 ÷ 492,240.61 =
323,768.01 ÷ 492,240.61 × 100/100 =
(323,768.01 × 100 ÷ 492,240.61)/100 =
(32,376,801 ÷ 492,240.61)/100 ≈
65.774339504414/100 =
65.774339504414% ≈
65.77%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 492,240.61 to the final, end value 168,472.6:
Rounded off to max. 12 decimal places ≈ 65.774339504414%
Rounded off to max. 2 decimal places ≈ 65.77%
The absolute (actual) difference
492,240.61 - 168,472.6 = 323,768.01
By what percentage has 492,240.61 decreased?
Answer: By ≈ 65.77%
By what percentage is 168,472.6 smaller than 492,240.61?
Answer: By ≈ 65.77%
The relative percent decrease change is positive,
so we really have a relative percent decrease
(the value goes down).