headermask image

Business Tools Blog

Formula to calculate growth - with positive and negative numbers

We track Annualized Revenue, Growth and Cashflow generation on a quarter over quarter and year over year basis to determine the health of the business.  If your calculation has both positive and negative numbers, you will need to use the Absolute Value* function in Excel.

Example 1:

  • 1Q Revenue: $400K
  • 2Q Revenue: $410K
  • The formula is (410-400)/400 = .025 or 2.5% per quarter.  Annualized the growth is 2.5%*4= 10%
  • The excel formula is (1Q-2Q)/ABS(1Q)*4

Example 2:

  • 1Q EBITDA: ($100)K
  • 2Q EBITDA: $50K
  • The formula is (50 - (100))/100 = 1.5 or 150% per quarter.  Annualized the growth is 150%*4=600%
  • The excel formula is (1Q-2Q)/ABS(1Q)*4

Example 3:

  • 1Q EBITDA: $50K
  • 2Q EBITDA: ($100)K
  • The formula is ((100)-50)/100 = -1.5 or (150%) per quarter.  Annualized the growth is (150%)*4=(600%)
  • The excel formula is (1Q-2Q)/ABS(1Q)*4

Using the “ABS” or Absolute value formula in the denominator is necessary for Example 2 to work.

* Absolute value is its numerical value irrespective of its sign. So, for example, 400 is the absolute value of both 400 and (400)

If you liked my post, feel free to subscribe to my rss feeds

29 Comments so far (Add 1 more)

  1. Unquestionably believe that which you stated.

    Your favorite reason seemed to be on the internet the easiest thing to be aware of.

    I say to you, I certainly get irked while people think about worries that they just
    do not know about. You managed to hit the nail upon the top and also defined out the wole thing without having side effect , people
    could take a signal. Will likely bbe back to get more. Thanks

    1. off betfair trading on October 13th, 2013 at 7:20 am
  2. This stress plays the role of a hurdle in our productivity.
    And because of this excessive stress we also hamper our efficiency.
    Although relaxation and or meditation is helpful for
    this group, it should be combined with methods to build self esteem.

    2. define stress on June 17th, 2013 at 1:19 am
  3. Great post.

    3. click through the on June 3rd, 2013 at 5:59 am
  4. A little bit of knowledge goes a long way in all situations in life.
    Buying a car is no different! That means you need to read advice
    from experts, as detailed below, to ensure that when
    you shop for that car, you really know what
    you’re doing and how to get the best deal.

    4. cars on June 2nd, 2013 at 3:04 pm
  5. I liked up to you will obtain carried out proper here.
    The sketch is tasteful, your authored material stylish.
    nevertheless, you command get got an shakiness over that
    you want be delivering the following. sick no doubt come further until now again since exactly the
    similar just about very incessantly inside case you shield this hike.

    5. Faconnable Face on May 19th, 2013 at 5:42 am
  6. Hello to all, as I am truly eager of reading this website’s post to be updated daily. It includes good data.

    6. Deadlingerwiki.fr on May 12th, 2013 at 8:56 pm
  7. I’m now not sure the place you’re getting your info,
    however good topic. I needs to spend a while studying more or
    working out more. Thanks for excellent info I was looking for this info for my mission.

    7. Advertising on May 11th, 2013 at 12:59 am
  8. I am going to recommend http://businesstoolsblog.

    com/2009/03/formula-to-calculate-growth-with-positive-and-negative-numbers/ to completely all of my friends :) Very
    fascinating domain with good information! Greetings,

    8. Lupe on May 9th, 2013 at 1:38 am
  9. These e cig devices are so popular because they
    Get most Feature a “surgeon universal’s admonition” on them indication something
    wish “Cigarette smoking may be hazardous to your health” or
    cigarette pot contains carbon monoxide.” electronic cigarette uk-super too provide the same esthesis of malodour of cigarette roll of tobacco so you try desperately to handle it up with air freshener sprays.

    9. e cigarette on May 5th, 2013 at 5:17 am
  10. ask for e-cigarettes, Nonetheless, power be valuable as the
    electronic cigarette Follow-up is for helping the consumer personally.
    electronic cigarette uk His written reply to the FDA began: I fumar mientras trabajaba en el sistema,
    tiene la opci�n de demasiado.

    10. e cigarettes on May 5th, 2013 at 5:16 am
  11. Promise you will like and payday loans are of
    unlatched nature. wonga Do you need a personal cash loanword that testament be or managed related to to the specific
    job you’re targeting.

    11. wonga loan on May 4th, 2013 at 4:13 am
  12. The topper word of these loans 10 to 15 minutes for the
    application program process. wage day advance uk Besides
    you can easy find borrowing car statute title loans are secured
    borrowing and you want to put your fomite as protection and collateral for the loan.

    12. wageday advance on May 4th, 2013 at 4:05 am
  13. Hello my loved one! I want to say that this article is awesome, great written and come with almost all significant infos.
    I would like to peer more posts like this .

    13. payday loan finder on April 28th, 2013 at 2:46 am
  14. Hi! This is my first visit to your blog! We are a group of volunteers and starting a new
    project in a community in the same niche. Your blog provided us valuable information to work on.

    You have done a extraordinary job!

    14. weight equipment on April 24th, 2013 at 12:34 am
  15. It would be an intelligent step when you check complete,
    debate that the a minimum of 1000 per 30 days long term loans uk No need to troubled, in order to promote your business this can be
    a easily, (furnished the lender is actually
    accredited together with the HUD

    15. 12 month loans on April 19th, 2013 at 2:52 pm
  16. The best way to appreciate your Beach World experience is to
    prepare your holiday plans well http://www.shorttermloansjack.
    co.uk/ t have sufficient cash to make up with
    an unforeseen outlay

    16. www. on April 15th, 2013 at 1:13 pm
  17. Treasury Bonds over to the Federal Reserve Corporation’s The big apple branch, exactly who in turn supply Congress the quantity ($1 billion however) in money and credit ratings — which they imprinted from from thin air payday loans no credit check Paying for rewards are by far the easiest way to manage your hard earned cash, but if you will need to use a bank card, only use 1

    17. www. on April 15th, 2013 at 1:09 pm
  18. Big win, a real post not written with autospun garbage! I’m so fed up with google and their updates. They are penalizing good sites such as this — you happen to be on page 5 incidentally — and moving spammy pages all the way to the top. What is going on!

    18. find out more on April 15th, 2013 at 4:12 am
  19. Loser State of mind No loans for bad credit Thus it will become the skilled business system for all that happen to be
    engaged within import-export trade, Indian exporters, manufacturers plus suppliers connected with plastics in addition to
    allied industry

    19. www. on April 15th, 2013 at 3:51 am
  20. I was seeking this particular info for a long time. Thank you and best of luck. Sustained stress is not good for human http://www.571love.com/forum.php?mod=viewthread&tid=16192

    20. Sustainedstressisnot on March 21st, 2013 at 6:33 pm
  21. Even so, if not, they will history time for it to repay
    the financial loan payday loans To submit an Offer in
    compromise with the Interest rates, one can proceed to the
    IRS web page, which contains submitting instructions in addition to a link to the ideal

    22. pay day loans on February 14th, 2013 at 11:51 pm
  22. Outstanding post, but what do you think about creating a 2nd part to this post?

    What you covered was impressive, do not misunderstand
    me, I just believe there was some critical concerns you left un-answered.

    23. Tyler on February 12th, 2013 at 2:52 am
  23. Holy crapadoodle, how much time did it take you to create this?

    Did you produce this yourself or did you pay somebody?
    Well either way, it’s exceptional stuff and it’s definitely worth a read;
    keep it up. I’ll be back later on and I hope you will have more

    24. Dev.Promo121.Com on February 10th, 2013 at 4:41 pm
  24. Greetings I am so happy I found your website, I really found you by error, while I was looking on Bing for something else, Anyhow I am here now and would
    just like to say cheers for a fantastic post and a all
    round interesting blog (I also love the theme/design), I don’t have time to look over it all at the moment but I have bookmarked it and also included your RSS feeds, so when I
    have time I will be back to read a lot more, Please
    do keep up the great work.

    25. mudanzas on January 11th, 2013 at 2:09 am
  25. In perusing through some of the cost centers within the Talent Chaser Data Repository,I noticed that the Revenue and Expenses variances in some cases were positive and should have been reflected as a negative and vice versa. Is it possible for you to have someone quickly go through the cost centers to ensure this is correct as naturally it will cause the aggregate numbers to appear out of synch

    26. sonia on June 23rd, 2011 at 8:52 am
  26. What Eric says is true. But that doesn’t solve the problem.

    27. usws on October 23rd, 2010 at 11:33 pm
  27. Actually to show growth, the excel formula should be Q2 - Q1, not Q1 - Q2. Eric is correct, which raises the point of how meaningful it is to show growth in % when you move from negative to positive or vice versa. The WSJ just marks it as a P(profit) or L(loss) until the numbers are both positive.


    28. Jonathan on July 12th, 2010 at 6:38 am
  28. The first explanation worked for me

    29. Miss Tee on January 14th, 2010 at 5:15 am
  29. This seems to work but it doesn’t. Try using a lower negative value in your Q1 and you will see that the % variance actually decreases the further you pull away rather than growing.

    In above mentioned example: Q1 = -100 and Q2 = 50 your output is: 150%. Now if it were -200 instead of -100 then the output becomes:
    125% which is ridiculous. It should be more not less…

    30. eric on June 2nd, 2009 at 6:06 am

One Trackback

  1. By payday loan online on February 23, 2013 at 3:00 pm

    payday loan online…

    Formula to calculate growth - with positive and negative numbersBusiness Tools Blog…

Post a Comment

Your email is never published nor shared. Required fields are marked *