Absolute and percentage variable are they Formulas?
Absolute and percentage variable are they Formulas? I dont understand this:
var.abs.16-15 and var.%. 16-15
Good to hear from you!
In this case we calculate the percentage variance from one year to the next. To do that we use the following formula:
(Current period value - Previous period value) / Previous period value = % variation
So for example if a company has revenue of 120 this year and it had revenue of 100 last year, we will have:
(120 / 100) - 100 = 20 / 100 = 20%
Hope this makes sense!