Table Interpretation & Percentage Analysis
Chapter concept map
Tap a node with a dot to see its explanation.
Key formulas
Percentage Change
% Change = (New − Old) / Old × 100
Gross Profit Margin
GPM = (Revenue − COGS) / Revenue × 100
Operating Margin
Op. Margin = (Revenue − COGS − OpEx) / Revenue × 100
Compound Growth
Value = P × (1+r₁) × (1+r₂) × … × (1+rₙ) Do NOT add rates — multiply the factors.
Weighted Average
x̄_w = Σ(wᵢ · xᵢ) / Σwᵢ
EBITDA
EBITDA = EBIT + Depreciation + Amortisation
Subtopic 1 / 3
Reading Tables & Computing Margins
Before computing anything from a table:
1. Check whether the question asks for a combined figure (sum all quarters first) or a per-period figure 2. Identify the correct formula: GPM, Operating Margin, or EBITDA
⚡ Never average quarterly margins to get the annual margin. Always sum the numerator and denominator separately, then divide.
Worked example
Firm Alpha annual totals: Revenue = 120+150+160+200 = €630M. COGS = 72+85+96+110 = €363M. GPM = (630−363)/630 = 267/630 = 42.4%. Wrong approach: average of Q1/Q2/Q3/Q4 individual GPMs → gives a different (wrong) number.
Exam strategy
Focus on understanding underlying concepts — exam questions test application, not memorization.
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