Rate Of Change - ROC

Categories: Marketing, Metrics

See: Delta. And think: New minus Old, all over Old.

Think: your piggy bank. You reached down into its naughty places and, well, had to violate it to get your money out. At New Year's Eve last year, it had $28.36 in it. It's now a year later, and you do the same annual violation. You count $37.55. What's its delta, or rate of growth?

New: $37.55. So you subtract $28.36 from $37.55 and get $9.19. The old is $28.36...and you get about 32.4%. That's the rate of growth, year over year.

And yes, you can have a negative number as well: rate of shrinkage. Either way, they're rates of change.

Related or Semi-related Video

Econ: What is Utilization Rate?1 Views

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And finance Allah shmoop What is utilization rate Thie utilization

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rate allows you to track how much you use something

00:11

the rate of use A rate of utilization Very cleverly

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named All right people You're a connoisseur of nose hair

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grooming You have a display case full of nose hair

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clippers Most are collector's items just on display there looking

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good there on the glass you know so you can

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impress your fellow knows grooming hobbyists Well you want to

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figure out utilization rates for each of your main clippers

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That way you can report the numbers for the fans

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of your popular Blawg the sniffer snipper Well there are

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three clippers that you use for day to day nostril

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Curation what Monday through Thursday you used the clip tastic

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five thousand It's a turbocharged industrial model originally developed during

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the Cold War to close the nose hair gap with

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the USSR Well it gets the job done efficiently without

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much wear and tear Perfect for the work week Well

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Friday and Saturday you use the Sheikh Shaper X nine

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popular with Instagram models and French politicians It gives a

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much finer more alluring cut perfect for date night or

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clubbing you know with your crew Sunday requires a more

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Jim You're cut something more reflective more relaxed It's time

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for the with whisper blew It provides a slow comfortable

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trimming experience Well those air the clippers you use on

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a regular basis time to determine utilization rates you use

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the clip tastic five thousand forty's Week Monday Tuesday Wednesday

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Thursday there seven possible day so utilization right here's four

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divided by seven are about fifty seven percent used The

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sheik Shaper X nine two days a week Friday and

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Saturday two out of seven twenty nine percent And the

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whiff whisper only gets use once a week one out

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of seven on the rate they're fourteen percent In real

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life businesses can use the utilization rate to see how

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efficiently they're using Their resource is like What if they

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had a tractor smelter thing that was just sitting there

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Not used four days a week But they may be

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rented to another tractor smelter and make more money Something

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like that Well really businesses can figure out how much

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they operate equipment see if they have additional slack to

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ramp up production And in that slack sometimes they can

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run it out or do everything's with it and make

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a fortune And if that's not the case well then

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they can use it as an employee evaluation tool Like

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by looking at a worker's utilization rate a company can

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see if their employees time is getting applied effectively like

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one cashier only processes one hundred twelve grocery store shoppers

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a day But everyone else processes at least one hundred

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eighty then it's likely she's probably spending social hour too

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often with her customers yapping them about their purchases right

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Okay well so you start a nose clipper consultancy business

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to take advantage of your vast knowledge of the industry

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You contract your services to manufacturers test their products and

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advise them on various high level Clipper related problems You

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work forty hours a week but only twenty two of

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those hours are pay billable hours working for clients The

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rest of the time you're working on well marketing and

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processing billing and watching YouTube videos about the history of

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nose hair So you stay current on the industry so

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that's twenty two of forty hours working with clients are

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billing them for your time That's a utilization rate ofyour

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time We're actually being paid for it of fifty five

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percent Probably some room for improvement there right You really

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need all that research Could you get more clients to

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then Bill Okay so maybe it's time to switch to

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the Sheik shaper for work days It will get you

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that more impressive cut for client meetings Yeah How'bout that

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Hopefully you'll be able to jack up those billable hours

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Increase the utilization rate for the sheik shape or to

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eighty six percent Pretty much every day but Sunday Yeah

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that'd be big Then maybe you can get your billable

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hours utilization right above sixty percent Right You make a

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lot more money If you do that after all a

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few more clients And then you can afford a few

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more collector clippers in the display case here Like the

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Clipper Lincoln used before giving the Gettysburg or the Clipper

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that Neil Armstrong took to the moon Remember the quote

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One small clip for man You know something like that

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