Forums › OBU Forums › Changes in Ratios & Trends
- This topic has 4 replies, 2 voices, and was last updated 8 years ago by knightking.
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- September 24, 2016 at 7:27 am #341535
G.morning Trephena,
Please is it right and acceptable to present changes in ratios in graph rather than the ratios itself and also explain them. Using GPM for example:
2012 = 25%, 2013 = 30%, 2014 = 32%, 2015 = 35%
graph ploted using:
5% increase for 2012 – 2013, etc
instead of ploting:
30% for 2013, 32% for 2014, 35% for 2015
thank you.
September 24, 2016 at 10:06 am #341547Please anyone with a helping information as well can comment on the above.
Thank you
K
September 24, 2016 at 12:33 pm #341559Hi there,
We suggest plotting the graphs the conventional way of
30% (2013), 32% (2014).Firstly, the gross profit margin increased by 5 percentage points. Not 5%. An increase of 5% means 25% X 1.05.
There is a big difference in that and I am not sure if you will be able to clearly show that in your graph.
The examiners are used to the conventional format, thus you make their review easier too.
Unless there is a unique value in the method you propose, we suggest you stick with convention. Finally, the real marks lie with the analysis instead of the graphs.
All the best,
The Learning LuminariumSeptember 24, 2016 at 2:41 pm #341571@Learning Luminarium, thank you so much for that.
Please, lastly, how about this strategy:
In the analysis:
ABC increased GP and GPM by X% and 5% points respectively…
Then, in the graph:
… conventional way as you have suggested.
thank you
September 27, 2016 at 5:11 am #341838Good morning Trephena,
Please forgive me for disturbing the forum with the above questions. I will be glad to get corrected if i have asked wrongly.
Thank you.
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