A company report its net profit 1,000,000 in 2000,and earned 1,100,000 in 2001,so the earning increase rate from 2000 to 2001 is as below:
1,100,000-1,000,000)/1,000,000 = 0.1 =10%
A company report its net loss 1,000,000 in 2000,and earned 1,100,000 in 2001,so what is the the earning increase rate from 2000 to 2001 ?
(1,100,000-(-1,000,000))/(-1,000,000) = -2.1 = -210%
Should i say that the earning increase rate from 2000 to 2001 is -210%
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Let suppose a extrem case:
A company report a zero profit in 2000,and earned 1,100,000 in 2001,what is the the earning increase rate from 2000 to 2001 ?
(1,100,000 - 0)/ 0 # no meaning!