What does YoY mean?

For instance, you would compare the first quarter of 2021 with the first quarter of 2020, because they share the same period length. YOY can be positive, negative or zero – indicating increasing, decreasing or stagnating trend in the measured statistic. Formula: HOW is Year-Over-Year Growth Calculated?

How do you calculate YoY?

The YOY calculation is simple and takes 4 easy steps: Select the two data points you want to evaluate–one for the period you are examining, and another recorded 12 months prior. Subtract the old number from the new number. That gives you the difference for the year. Positive change indicates a year-over-year increase–and vice versa.

How is YoY used in real-life?

Here are some additional examples of how YOY is used in real-life: An analyst in an investment firm is comparing the key financial results–Revenue, EBITDA and Net Income–of a company for the month of June in years 2020 and 2021. While the Revenues have increased by 25%, the EBITDA has shrunk by 10%.