Expense over revenue

[Tcurmoney]

Hi,

I just can’t figure out why this won’t work.

if last year my expense was 140 and my revenue was 237. Then my expense compared to revenue is about 59percent.

this year my expense is 150 and my revenue is 274. So my expense over eve with is about 55 percent. About a 4percent decrease.

how come when I take the expense increase from the two years of 10 vs the revenue increase of 37, I don’t get the 4percent decrease?
And what formula would give me the 4percent decrease?

thanks so much

 

[tkhunny]

You're saying:

140/237 = 0.5907
150/274 = 0.5474
0.5474/0.5907 = 0.9267 -- Looks more like a 9¼% decrease in this value.

Further, you state:

(140+150)/(237+274) = (290)/(511) = 0.5675 and why isn't this what? What do you expect it to be?

Maybe you're saying:

(140-150)/(237-274) = -10/(-37) = 10/37 = 0.27027 and why isn't this 0.9267 or 0.5474 or 0.5907? Why do you expect it to be any of those?

 

[Tcurmoney]

Hi,

thanks so much for responding. So in the attach file (I can’t attach a spreadsheet sorry).

how come when I take the change in year of 8 for salary over 37 for revenue I don’t get 4.26 when doing the divisions? And is there a way to get the 4.26 with division? Right now the formula is just one year less the other.

 

[tkhunny]

Hi,

thanks so much for responding. So in the attach file (I can’t attach a spreadsheet sorry).

No worries. I wouldn't have opened the spreadsheet, anyway.

Sadly, one cannot simply average averages. Total must always be considered.

4/50 = 0.08
3/5 = 0.60
(4+3)/(50+5) = 0.12727 which is NOT (0.08 + 0.60)/2 = 0.34

The problem I have seen and repaired a few times is the assumption that is works ALWAYS, because it works SOMETIMES.

4/5 = 0.80
3/5 = 0.60
(4+3)/(5+5) = 0.70 which IS (0.80 + 0.60)/2 = 0.70

I think you just need to review your spreadsheet and define more carefully EXACTLY what it is that you want to see.