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Two variables change every year, e.g. $a_1=500$, $a_2=600$ and $b_1=1000$ and $b_2=800$. Their ratio change is $$YoY=a_2/b_2-a_1/b_1=600/800-500/1000=0.25$$ The negative change in the denominator is a negative event and I want to reflect this, so e.g. in the example above $YoY$ is smaller if the change in the denominator is negative and vice versa. One solution I tried was called adjusted nominator: $$YoY=a_2*(b_2/b_1)/b_1$$ With the same values as above, it gives $-0.02$ as a result, which is less then $0.25$, thus it reflects the negative change in the denominator. What are the best tools for this scenario?

balintd
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    What is that $YoY$ thing? – Dominique Feb 28 '24 at 09:50
  • It's unclear what you want. So this YoY is some comparison between two ratios. If the $YoY=0$, then the ratios are the same. If $YoY>0$, then change in the variables with index 2 are larger, and vice versa. What else do you want? – Matti P. Feb 28 '24 at 10:02
  • I've edited the post: I want a metric thatis different from the first $YoY$, depending more of the denominator's change. $YoY$ stands for year-over-year (change). – balintd Feb 28 '24 at 11:57

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