The analysis of the dynamics of indicators begins with how exactly they change (increase, decrease or remain unchanged) in absolute and relative terms. To track the change in the series of dynamics over time, indicators are calculated: absolute change, relative change, rate of change.
Instructions
Step 1
Please note that all these indicators can be basic, when the level of one period is compared with the level of the initial period, and chain, when the level of two adjacent periods is compared.
Step 2
You can calculate the basic absolute change (absolute increase) as the difference between the specific and the first levels of the series: Y (b) = Y (i) - Y (1). It shows how much the level of a particular period is higher or lower than the base level. Chain absolute change is the difference between the specific and the previous level of the series: Y (q) = Y (i) - Y (i-1). It shows how many units the level of a particular period is higher or lower than the previous one. Remember that there is a relationship between baseline and chain absolute change: the sum of chain absolute changes is equal to the last baseline change.
Step 3
When analyzing performance dynamics, you can calculate a baseline relative change (baseline growth rate). It represents the ratio of a specific indicator to the first of a number of dynamics: I (b) = Y (i) / Y (1). Chain relative change is the ratio of the specific and previous level of the series: I (c) = Y (i) / Y (i-1). The relative change shows how many times the level of a given row is greater than the level of the previous row, or what part of it is. The relative change can be expressed as a percentage by multiplying the ratio by 100%. There is a relationship between chain and basic relative changes: the product of chain relative changes is equal to the last basic one.
Step 4
In addition, when analyzing the dynamics of indicators, you can calculate the rate of change (growth rate) of levels. This is a relative indicator that shows how many percent a given indicator is more or less than another, taken as a comparison base. It is determined by subtracting 100% from the relative basic or chain change: T (i) = I (i) - 100%.
