YOY is an acronym that stands for "Year Over Year." It is a financial metric used to compare a company's performance or the performance of a specific indicator over a period of one year to the same period in the previous year. YOY analysis is commonly used in various fields, such as business, economics, and finance.
The YOY metric allows analysts and investors to assess and evaluate the growth or decline of a company or a particular variable over time. By comparing data from one year to the next, it helps provide insight into the overall progress or regress of an entity or an industry. This comparison enables stakeholders to identify trends, patterns, and outliers in the data, which can provide valuable information for decision-making and forecasting.
To calculate YOY, the data from a specific period in the most recent year is compared to the corresponding period in the previous year. The change in percentage is then derived from this comparison. A positive YOY percentage indicates growth, while a negative percentage reflects a decline.
The YOY metric is widely used across different industries, including retail, manufacturing, finance, and marketing. It is particularly helpful in measuring sales, revenue, expenses, market share, and other performance indicators. YOY analysis enables businesses and individuals to track their progress and make data-driven decisions to improve their future performance.
