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Year-over-Year (YOY)

Year-over-Year (YOY) is a financial comparison method that measures the change in a specific financial metric, such as revenue, profits, or returns, from one year to the next.It is commonly used to analyze growth rates and trends over time, providing insight into how a business, investment, or economy has performed relative to the same period in the previous year.

Example

A company reports a 10% YOY increase in revenue, meaning its revenue this year is 10% higher than the same period last year.

Key points

• Compares a financial metric, like revenue or earnings, to the same period in the previous year.

• Useful for tracking growth rates and trends over time.

• Commonly used in financial reports and investment analysis to evaluate performance.

Quick Answers to Curious Questions

It provides a straightforward comparison of growth or performance between the current year and the previous year, helping assess trends and business progress.

Metrics such as revenue, earnings, net income, and returns are commonly analyzed on a YOY basis to evaluate growth and performance.

It helps investors understand whether a company is growing or declining over time, offering insights into long-term trends and business health.