Year-Over-Year (YOY)

Year-Over-Year (YOY) is a financial analysis method that compares a specific metric — such as revenue, profit, expenses, or customer growth — for a given period to the same period in the previous year. YOY analysis helps identify growth trends, seasonal variations, and business performance over time by standardizing the comparison timeframe.

YOY Formula (for Growth Rate):

YOY Growth (%) = ((Current Year Value - Previous Year Value) / Previous Year Value) × 100

YOY metrics are favored because they eliminate the impact of seasonality, providing a clear and consistent perspective on a business’s annual growth trajectory.