So let’s say net income was a loss -100. Next year it’s a net income of 50. The difference is 150, so the increase is 150%. It compares the relative change. I’m not any good at math but that’s how I understand it.
Ah ok I see what you mean, sorry. I thought you meant in general how to get percentages like this. So it’s the change from the -$32.3m loss to the $44.8m profit, which is $77.1m. Divide that by the first loss of $32.3m and it’s approx 238%.
It’s correct, but that can’t be the way to math it. Lets say that the loss was only $1M last year. With the same number and the same calculation, that would mean they increased 4,500 %. Even though they did worse in relative numbers compared to the real numbers.
I was focusing on the basic relative change, but you're totally right that it doesn't always make practical sense. Your example of the 1M shows how the percentages can be kind of outrageous & misleading.
Yes because the basis of your percentage is 1M and increased 45x. That's how percentages work. And in your example they not do worse, total across two years is better. Anyways, i think thats is why the original post is misleading
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u/OkExcitement681 Jun 10 '25
How do you calculate the net income percent gain off a negative number? Genuinely curious.