Description: Percentage change is a calculation that shows the relative variation between two values, expressed as a percentage. This calculation is fundamental in data analysis, as it allows analysts and decision-makers to understand how one value has changed in relation to another, facilitating the comparison of data across different periods or contexts. Percentage change is calculated using the formula: ((final value – initial value) / initial value) * 100. This approach provides a clear measure of growth or decline and normalizes the data, allowing for more effective comparisons between different data sets. In the business realm, percentage change is crucial for evaluating sales performance, revenue growth, and other key performance indicators (KPIs). Additionally, it is widely used in finance to analyze investment profitability and in economics to study market trends. Its relevance extends to various disciplines, including statistics, market research, and strategic planning, where understanding percentage variations can influence critical decisions.
