Percentage Change

The percentage change is a measure of the change in a quantity relative to its starting value. It is calculated by dividing the change in the quantity by the starting value and multiplying by 100%.

For example, if a stock price starts at $100 and increases to $110, the percentage change is ($110 - $100) / $100 * 100% = 10%.

The percentage change can be used to compare changes in different quantities or to track the performance of an investment over time. It is also used to calculate compound interest.

The percentage change can be positive or negative. A positive percentage change indicates that the quantity has increased, while a negative percentage change indicates that the quantity has decreased.

The percentage change is a useful tool for financial analysis, but it is important to be aware of its limitations. For example, the percentage change does not take into account the starting value of the quantity. This means that a small percentage change can represent a large change in value if the starting value is small.

Additionally, the percentage change does not take into account the time period over which the change occurred. This means that a large percentage change can represent a small change in value if the time period is long.

Despite these limitations, the percentage change is a valuable tool for financial analysis. It can be used to compare changes in different quantities, track the performance of investments over time, and calculate compound interest.