Back to Glossary

Year-over-Year

What Is Year-over-Year?

Also known as year-on-year, year-over-year (YoY) is a popular financial standard used for comparing two or multiple measurable events periodically, on an annual basis. This annual comparison can help a business gauge whether its finances are static, improving, or even exacerbating.

How To Calculate Year Over Year Growth

The year-over-year growth formula compares the current financial performance of a business with that of a previous year. Typically, this means gauging how the business grew in the current year, compared to the previous year.

Now that you understand What Is Year-over-Year, here is the formula to deduce it.

YoY (%) = Current period value/Previous period value – 1.

Benefits Of YoY

Most businesses can deduce year-over-year growth because the formula is relatively simple to use and interpret. This means that any stakeholder can understand the percentage results for a quick comparison or decision-making.

The benefits of YoY include:

  • Ideal for creating business strategies;
  • Its growth information can help in financing or loan processing;
  • Better insights into the performance of seasonal businesses.

How YoY Is Used

You already know how to deduce year over year growth. But how is this standard used in the business world? It enables business owners to make collations between two time periods that are a year apart. For instance, you can make an annual comparison between this year’s first-quarter earnings and last year’s earnings during the same period.

With this standard at hand, businesses can compare their growth rate in terms of profits or revenues accrued. Also it helps businesses highlight various changes in the economy that influence their growth in one way or another, such as GDP or money supply.

How To Interpret YoY Growth Analysis

Year-over-year growth solves the problem of monthly volatility by annualizing growth rate collations between current and past periods. On top of that, it shows cyclical patterns of how the economy affects business growth.

It will help if you understand how to interpret YoY growth analysis before making a definitive conclusion. A positive standard shows an increased growth while a negative standard shows a decreased growth.

Frequently Asked Questions About Year-over-Year

How to calculate YoY growth in excel?

Besides using the standard growth formula, you can deduce this standard for free in excel. You’ll need a ready-made online excel sheet that will need you to upload revenues and EBIT projections for varying forecast periods.

What is the purpose of a YoY growth analysis?

The purpose of this growth standard analysis is to gauge the performance of a business over a certain duration, in terms of profit or revenue generation. At its core, the standard compares revenue growth between a current and previous period.

What are some examples of insights that can be obtained from YoY analysis?

Some of the insights that can be obtained from this standard’s analysis include:

  • Revenues;
  • Profits;
  • Capital efficiency;
  • Capital solvency and liquidity;
  • Operational efficiency.

How might YoY analysis be misleading at times without proper context?

The analyses can be misleading if the person calculating the standard manipulates the axes or entries to show a desired or predetermined result.

You May Find It Interesting

Cloud Product Information Management

Cloud Product Information Management: How to Choose the Right Platform?

In this piece, we will discover what is cloud based product information management and how to choose the right platform for your business.

Read more
Gepard PIM April Updates: Import Module and Taxonomy Features
3 min read
Gepard Updates

Gepard PIM April Updates: Import Module and Taxonomy Features

This April, we announced updates to our PIM solution, focusing on bug fixing, enhancing the Import Module, and advancing Taxonomy features.

Read more
Why Product Video Syndication is Your Next Big Win

Why Product Video Syndication is Your Next Big Win

Discover the transformative impact of a product video syndication platform on your eCommerce business and product data management.

Read more
Automotive Product Information Management
5 min read
Blog

Automotive Product Information Management [Full Guide 2024]

Explore the benefits of Automotive Product Information Management system in streamlining supply chains and enhancing customer service.

Read more
PIM Free Trial vs Freemium PIM vs Open Source PIM

PIM Free Trial vs Freemium PIM vs Open Source PIM

Explore the differences between free trial PIM systems, open source PIM, and freemium PIM solutionsm, their pros & cons.

Read more
PIM for Marketing: Full Guide [2024]

PIM for Marketing: Full Guide [2024]

PIM for marketing: unlock marketing success with PIM. Learn how to centralize product data for consistency and engagement.

Read more
Gepard Stiebel Collaboration
< 1 min read
Gepard Updates

Gepard PIM Embarks on a Groundbreaking Partnership with Stiebel Eltron

We are thrilled to announce a groundbreaking partnership between Gepard PIM and Stiebel Eltron, a leader in heating and energy solutions.

Read more
Gepard PIM Introduce New EPREL Product Categories
2 min read
Gepard Updates

New EPREL Product Categories at Gepard PIM

Gepard PIM is happy to announce the addition of new EPREL product categories: Air conditioners, Ventilation units, Temperature controls, etc.

Read more
EPREL Case Studies

Product Data Export To EPREL Database: 3 Success Stories

Product data entry to EPREL database: explore real cases and learn how Gepard helped comply with energy labeling regulations.

Read more
Gepard Features Hub: Digital Shelf Analytics For eCommerce

4 Key Performance Indicators in Digital Shelf Analytics Software

Explore essential digital shelf analytics KPIs such as search rankings, conversion rates, content quality, and pricing competitiveness.

Read more

Let’s Get In Touch

Need to contact us? Just use this form

Gepard Privacy Policy
Success
PIM researches
Unlocking the Future of reCommerce: Your Insights Matter!
Join our mission to transform the reCommerce landscape: Share your expertise and make a difference!
Join Research