MOM Change Interpretations

Hello,

I have a simple question that I am sure you folks out there, much smarter than I am, can help me with.

For MOM change I use the formula: previous month / current month - 1 Formula: SUM(200 / 100) - 1 = -50%

Recently someone mentioned I should use formula: previous month - current month / previous month Formula SUM(200 - 100) / 200 = -100%

In my estimation, it seems the first one is correct because you went down a total of 50% of your "previous month" count. Am I correct? Are we both correct and just looking at two different views? TIA

This, 200 / 100 - 1, in my book, would be calculated as 200/100 = 2 - 1 = 1 = 100%

And this, 200 - 100 / 200, would be 100/200 = 0.5 and then 200 - 0.5 = 99.5

I think you must be missing some brackets in the description of the calculations.

For example:

HTML Code: 

Sorry, formula:

Formula:

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For MOM change I use the formula: previous month / current month - 1 Formula: SUM(200 / 100) - 1 = -50%

Recently someone mentioned I should use formula: previous month - current month / previous month Formula SUM(200 - 100) / 200 = -100%

The first formula result is correct at -50%. The second formula is wrong; that calculation would give 50%, not -100%. So it's wrong on both counts. And you don't need SUM, just the brackets.

You're welcome.



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