Sunday, December 10, 2023

# How to Use Percentages in Business

Changes in sales, losses, market share, and take rate can easily be explained to non-numerical audiences by presenting them as percentages.

It is easy to calculate a percentage, and you can interpret it however you like.

You’ll need simple math to calculate and use percentages effectively.

Another requirement is a pair of comparable numbers, such as the sales in the first year and the sales in the second year.

The first step is to write down the first set of numbers and the second set of numbers.

Here, we’ll look at a comparison of unit sales from two different calendar years as an illustration.

## Step 1:

Twenty-five of the fifty units sold the first year, and thirty-five of the fifty units sold the following year.

## Step 2 in Percentages:

Second, get the gap between the two sets of figures by subtracting them.

The difference, in this case, is 10.

## Step 3:

Multiply the result by 100 to get the maximum possible percentage. If we multiply 10 by 100, the result is 1,000.

## Step 4 in Using Percentages:

The fourth step is to divide the total number of units that may have been sold (50 in this case) by the result from step three.

Using this, as an illustration, we get a value of 20, which we can interpret as 20%.

Compared to its first year, the example company’s second year of business saw a 20 percent growth in revenue.

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