What Is Year-Over-Year (YOY)?
Year-Over-Year (YOY) is a commonly used financial evaluation for relating two or more quantifiable events on an annualized basis.
Looking at YOY presentation allows for evaluating if a company’s financial performance is refining, static, or worsening. For example, in financial reports, you may read that a specific business reported its revenues improved for the third quarter, on a YOY basis, for the last three years.
Understanding Year-Over-Year (YOY)
YOY contrasts are a popular and active way to estimate the financial performance of a corporation and the performance of savings. Any quantifiable event that repeats annually can be equated on a YOY basis. Common YOY assessments include annual, quarterly, and monthly performance.
Benefits of Year-Over-Year (YOY)
YOY measurements simplify the cross-comparison of sets of data. For a corporation’s first-quarter revenue using YOY data, a financial analyst or investor can compare years of first-quarter revenue data and quickly determine whether a company’s revenue is increasing or decreasing.