What is YOY Meaning? Year-over-year (YOY) is a method for comparing the outcomes of two or more measured events on an annual basis over different time periods. Let's take a closer look.
What is YOY Meaning?
The term year-over-year (YOY), sometimes known as year-on-year, is widely used in finance to compare two or more measurable events on an annual basis. YOY performance can be used to determine if a company's financial performance is improving, staying the same, or declining. For instance, you can read in financial reports that a certain company stated its third-quarter revenues increased year over year for the previous three years.
What Is YOY Used For?
YOY is a comparison measure that is used to compare one time period with one that is one year earlier. This enables comparisons on an annual basis, such as between the third quarter earnings this year and the third quarter earnings last year. It can also be used to describe yearly changes in an economy's money supply, gross domestic product (GDP), and other economic measurements. It is frequently used to compare a company's growth in profits or revenue.
How Is YOY Calculated?
Calculations for YOY are simple and typically presented as percentages. This would involve taking the current year's value and dividing it by the prior year's value and subtracting one: (this year) ÷ (last year) - 1.
What is YOY Meaning? What Is Year-over-year Used For? - Hopefully, this article can help you to get some knowledge.
