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 = 1,136,602, v2 = 8,359,195.5.
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: - 18.
- Choose a random positive number for the end value: 46.
Formula and calculation:
(v1 - v2) / v1 =
(- 18 - 46) / - 18 =
-64 / - 18 ≈
3.555555555556 ≈
3.56
Although the absolute difference is negative: -64, the relative decrease change is positive: 3.56. 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:
(1,136,602 - 8,359,195.5)/|1,136,602| =
- 7,222,593.5/1,136,602 =
- 7,222,593.5 ÷ 1,136,602 =
- 7,222,593.5 ÷ 1,136,602 × 100/100 =
(- 7,222,593.5 × 100 ÷ 1,136,602)/100 =
(- 722,259,350 ÷ 1,136,602)/100 =
- 635.45493497284/100 =
- 635.45493497284% ≈
- 635.45%
(Rounded off to max. 2 decimal places)
The relative percent decrease change
from the original, initial value 1,136,602 to the final, end value 8,359,195.5:
Not rounded = - 635.45493497284%
Rounded off to max. 2 decimal places ≈ - 635.45%
The absolute (actual) difference
1,136,602 - 8,359,195.5 = - 7,222,593.5
By what percentage has 1,136,602 decreased?
Answer: By ≈ - 635.45%
By what percentage is 8,359,195.5 smaller than 1,136,602?
Answer: By ≈ - 635.45%
The relative percent decrease change is negative,
so in this case we really have a relative percent increase instead
(the value goes up).