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Tony,

I'm not a mathematician, but it seems that there is no good logic for explaining growth of nothing to something.

I tried your formula on a couple of scenarios and the results just didn't make good sense. Here are the scenarios:

1) company grows net income from -2 to 10
2) company grows net income from -1 to 10

Before doing any calculations, which scenario represents the greater accomplishment? Obviously, scenario 1, right?

Now, let's try the formula: (a-b)/(absolute value of b)

1) (10 - (-2)) / | -2 | = 6 (or 600%)

2) (10 - (-1)) / | -1 | = 11 (or 1100%)

But, the calculation attibutes greater growth to scenario 2.

Again, I'm not a math expert, and I'm open to any and all ideas, but this just doesn't seem to jive with common sense.

Thanks for trying, though!

-Matt

p.s. as you can see, I finally changed my screen name

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