The company's expected profit for the year was £252000. The company actually made a loss for the year of £20000. What is the percentage of loss against the expected profit. Howe do you work it out.
P.Murphy
Replies (2)
Please login or register to join the discussion.
A kind of answer
Tourist to Irish Farmer: Excuse me, is this the right road to Dublin?
Farmer to tourist: Sure, if I was going to Dublin, I wouldn't start from here
Why do you need to express a loss as a percentage of a profit? Whatever calculation you come up with will only have a resitricted validity.
That aside, when we do budget comparisons (variance analysis) we calculate the percentage of the absolute value, and then change the sign. Thus:
(20,000/252,000)*-1= -7.9%
I don't claim that this gives a meaningful measure of anything in particular.