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Year on Year (YoY)

Meaning

Y-o-Y, or Year Over Year, refers to the practice of comparing data from one year  to the same period in the previous year.

Example :

For example, if a company earned ₹10 lakh last year and ₹12 lakh this year, it  indicates that the profit grew by 20% Y-o-Y.


How to Understand : 

Y-o-Y illustrates how things have changed over a year, whether there has been growth,  decline, or stability.


Importance :

1. It is essential for measuring long-term growth trends in businesses and economies.
2. Y-o-Y comparisons are useful for evaluating the performance of different companies.
3. It helps identify economic and financial trends over time.
4. This metric assists investors in assessing the strength and performance of a company or  market.

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