Real-Life Math
An investor relations (IR) specialist communicates their company's
events to the public, including the company's financial performance. As such,
IR specialists must understand financial statements. Therefore, math is a
necessary tool.
Without an understanding of math, IR specialists could
not perform their job effectively. An IR specialist is a powerful source with
a vast knowledge of finance, says Jay Gould. He is the director of an IR department.
Gould
explains that calculus and advanced math are not necessary, but those interested
in becoming an IR specialist should know how to read and interpret a company's
financial statements.
Some examples of financial statements are a balance
sheet and an income statement. These statements record the performance of
a company, such as what they earned or what they owe, over a certain period
of time, usually a year or a quarter (three months of a year).
Alex
Singal is an IR director. She was an analyst for a brokerage firm before her
present position. She is very versed in analyzing companies' financial statements.
As
an IR director, Singal says she mostly interprets financial data into ratios
and percentages that investors can understand. She agrees that no highly advanced
math skills are needed. Most formulas she uses daily are stored in her computer.
You
are an IR specialist who must analyze your company's income statement.
| 2013 | 2014 | 2015 |
| Revenues | $937,400 | $1,151,637 | $1,558,921 |
Calculate the percentage of revenue growth from 2014 to 2015.