A company’s revenue increased by 15% in the first year and then decreased by 10% in the second year. If the initial revenue was $100,000, what is the revenue at the end of the second year?

Thu, 16 Apr 2026 02:34:56 +0000

Revenue Walkthrough: How a Company’s Income Grows and Declines Over Two Years In the dynamic world of business, measuring revenue performance is crucial to understanding a company’s financial health and growth trajectory. Recent reports highlight a compelling pattern: a company’s revenue surged by 15% in its first year, only to dip by 10% in the second year. But what does this real-world financial shift mean, and what does the final revenue figure reveal? Year 1: Strong Growth Sets the Stage
Starting with an initial revenue of $100,000, the company achieved robust growth, increasing its income by 15%. This represents:
$100,000 × 15% = $15,000 increase,
bringing Year 1’s total revenue to $115,000. This growth reflects strategic initiatives, market momentum, or successful product launches—positive signs for stakeholders and investors.