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 = 24,897,909.54, v2 = 25,334,848.8.
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: - 6.
- Choose a random positive number for the end value: 16.
Formula and calculation:
(v1 - v2) / v1 =
(- 6 - 16) / - 6 =
-22 / - 6 ≈
3.666666666667 ≈
3.67
Although the absolute difference is negative: -22, the relative decrease change is positive: 3.67. 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:
(24,897,909.54 - 25,334,848.8)/|24,897,909.54| =
- 436,939.26/24,897,909.54 =
- 436,939.26 ÷ 24,897,909.54 =
- 436,939.26 ÷ 24,897,909.54 × 100/100 =
(- 436,939.26 × 100 ÷ 24,897,909.54)/100 =
(- 43,693,926 ÷ 24,897,909.54)/100 ≈
- 1.754923477805/100 =
- 1.754923477805% ≈
- 1.75%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 24,897,909.54 to the final, end value 25,334,848.8:
Rounded off to max. 12 decimal places ≈ - 1.754923477805%
Rounded off to max. 2 decimal places ≈ - 1.75%
The absolute (actual) difference
24,897,909.54 - 25,334,848.8 = - 436,939.26
By what percentage has 24,897,909.54 decreased?
Answer: By ≈ - 1.75%
By what percentage is 25,334,848.8 smaller than 24,897,909.54?
Answer: By ≈ - 1.75%
The relative percent decrease change is negative,
so in this case we really have a relative percent increase instead
(the value goes up).