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% Change in Revenue

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3:35 pm
March 20, 2010


Jae Jun

Admin

posts 1336

2

your right it should be divided by the previous yr revenue.

Got confused because the valuation spreadsheet has it going left to right while the financial statements go from right to left. Thanks.

2:06 pm
March 20, 2010


dmop12

Member

posts 39

1

Jae,

I noticed that when calculating percentage change in revenue, your formula is (Rev.Yr2- Rev.Yr1)/Rev. Yr.2. So if we apply this to a revenue of $2.00 in year 2 and a revenue of $1.00 in year 1 we would get a percentage change of 50% (1/2). Shouldn't we use the previous year to find the percentage change in revenue which would be, (1/1) or 100% change? I'm sure you have a reason for this though.

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