1. What is YoY Growth?

Year-over-Year (YoY) growth is a key performance indicator that compares a company's current period performance with the same period from the previous year. It helps measure business growth and performance trends over time.

2. How Does the Calculator Work?

The calculator uses the YoY Growth formula:

Where:

• This Year — Current year's sales or revenue figure
• Last Year — Previous year's sales or revenue figure for the same period

Explanation: The formula calculates the percentage change between two comparable periods, providing a clear measure of growth or decline.

3. Importance of YoY Growth Calculation

Details: YoY growth analysis is crucial for business planning, performance evaluation, investor reporting, and identifying seasonal trends. It eliminates seasonal variations by comparing similar time periods.

4. Using the Calculator

Tips: Enter both This Year and Last Year values in the same currency units. Ensure both values are positive numbers, and Last Year should not be zero.

5. Frequently Asked Questions (FAQ)

Q1: What does a negative YoY growth indicate?
A: A negative YoY growth percentage indicates a decline in performance compared to the previous year's same period.

Q2: How often should YoY growth be calculated?
A: YoY growth is typically calculated quarterly or annually, depending on business reporting requirements and analysis needs.

Q3: Can YoY growth be used for any metric?
A: Yes, YoY growth can be calculated for various business metrics including revenue, profit, customer count, or any other measurable KPI.

Q4: What's the difference between YoY and MoM growth?
A: YoY compares same periods year-over-year, while MoM (Month-over-Month) compares consecutive months. YoY is better for identifying long-term trends.

Q5: How should currency fluctuations be handled?
A: For multinational companies, it's best to use constant currency rates when calculating YoY growth to eliminate exchange rate effects.