# Development speed

## MoM development speed

The calculation formula is:

The value of an indicator in the reporting period

MoM development speed = development level in the reporting period/base period development Level=Chain growth rate+1

Chain growth rate=(reporting period development level-base period development level)/absolute base period development level

Development speed is usually expressed as a percentage. Development speed More than 100% indicates an increase, and less than 100% indicates a decrease. Due to the different base period, the development speed can be divided into the fixed base development speed and the chain development speed.

## Formula

Development speed is divided into chain development speed and fixed-base development speed. The chain development speed, the so-called chain development speed, is also called the period-to-period development speed. It is the ratio of the level of the reporting period to the level of the previous period, indicating the level of development of the reporting period relative to the level of the previous period; The ratio of a certain fixed period level (usually the initial level or the specific period level). Explain the level of development of the reporting period relative to the level of the fixed period, indicating the overall development speed of the phenomenon over a long period of time, also known as the overall speed. The calculation formula is:

Chain development speed=A1/A0, A2/A1,.....,An/An-1

Fixed base development speed=A1/A0, A2 /A0,....., An/A0

In the above formula, A0 represents the development level of the base period, An represents the development level of the reporting period, and n represents the number of items. The continuous product of the chain development speed is equal to the fixed-base development speed of the corresponding period;

The quotient of the fixed-base development speed of adjacent periods is equal to the chain development speed of the corresponding period.

The speed of development is generally expressed as a percentage. When the ratio is large, it is more appropriate to express it as a multiple. Example: Fixed asset investment in a certain place was 36.6 billion yuan in 1994 and 32.8 billion yuan in 1993. Compared with 1993, 366÷328=1.12. This is the development speed, expressed as a percentage as 112%, and expressed as a multiple. It is 1.12 times.

The growth rate is a dynamic comparison index calculated by combining subtraction and division. The calculation formula is:

The value of an indicator during the reporting period-the value of the indicator’s base period

Growth rate=　────────────────

The base period value of the indicator

If the calculation result is positive, then It is called growth rate or growth rate; if it is a negative value, it is called reduction speed, or reduction rate. For example, the growth rate of fixed asset investment in a certain place in 1994 compared to 1993 is: (366-328)÷328=0.12, expressed as a percentage, it is 12%.

From the above, we can see: growth rate = development rate-1 (or 100%). Then: if the development speed is expressed as a percentage, the development speed minus 100% is the growth speed. For example, if the development speed is 112% minus 100%, the growth speed is 12%; if the development speed is expressed in multiples, The growth rate minus 1 is the growth rate. Similarly, the growth rate of a certain period plus 1 (or 100%) is the development rate of this period.

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