How to calculate the percentage of increase/decrease with negative numbers?
Perhaps this "formula" will be easier to understand (this formula is equivalent to your formula - each can be derived from the other):
$$\dfrac{\text{original value} \;- \;\text{final value}}{\text{original value}} \times 100\% = \text{percent change}$$
That change will be
an increase if the original value is less than the final value,
a decrease if the original value is greater than the final value.
Original value $6.11$, final value $-3.73$:
$$\dfrac{6.11 -(-3.73)}{6.11}\times 100\% \approx 161\% \;\;\text{DECREASE}$$
Original value $-2.1$, final value $0.6$:
$$\dfrac{-2.1 - 0.6}{-2.1}\times 100\% \approx 128.6\% \;\;\text{INCREASE}$$
I know this is a very old thread, but I am here for the first time so I hope it is OK to comment.
Let's take an example:
Original value $-10$, final value $10$:
$\frac{Original\ value - Final\ value}{Original\ value} = 200\% \ increase $
Original value $-1$, final value $10$:
$\frac{Original\ value - Final\ value}{Original\ value} = 1100\% \ increase $
How can an increase from a smaller number ($-10$) to $10$ be a lesser percentage than an increase from a larger number ($-1$) to $10$?
I’m not a mathematician, but I don’t think percent change with values of opposite signs is defined.
See also: http://online.wsj.com/public/resources/documents/doe-help.htm
(the section named Net Income)