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I need the logic for the following situation. I am clueless in doing this.
Consider for January I have 10$ revenue and for February I have 20$ revenue.
My growth would be ((20-10)/10)*100% = 100%
If I have 0$ revenue for March.
Then my growth would be ((0-10)/10)*100 % =-100 %. Should I call this as negative percentage? (I know its deflation)
Going one step further,
If now I have 20$ revenue for April.
How can I calculate the growth now?, sure the following formula is wrong, ((20-0)/0)*100 %= ?????
My basic questions are
Is there a better solution to find growth rate, other than the one above?
If I use the aforementioned formula, should I take some value as reference? or this is wrong also?
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You cannot have a percentage increase from 0. It will always be 0.
10% of zero is zero, 500% of zero is still zero. So you can't increase 0 by a percentage and get 1. Even infinity doesn't work because no % increase from 0 will be anything other than 0. So there is no answer to the question.
First: work out the difference (increase) between the two numbers you are comparing. Then: divide the increase by the original number and multiply the answer by 100. % increase = Increase ÷ Original Number × 100. If your answer is a negative number, then this is a percentage decrease.
This is most definitely a programming problem. The problem is that it cannot be programmed, per se. When P is actually zero then the concept of percentage change has no meaning. Zero to anything cannot be expressed as a rate as it is outside the definition boundary of rate. Going from 'not being' into 'being' is not a change of being, it is instead creation of being.
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If you're required to show growth as a percentage it's customary to display [NaN] or something similar in these cases. A growth rate, on the other hand, would be reported in this case as $/month. So in your example for April the growth rate would be calculated as ((20-0)/1.
In any event, determining the correct method for reporting this special case is a user decision. Is it covered in your user requirements?
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