Zoho Bookings & SalesIQ Alignment

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Year on Year (YoY)

Meaning

Y-o-Y, or Year Over Year, is a financial metric that compares data from one year  to the corresponding period in the previous year, providing a clear picture of growth or
decline.


Example :

For example, if a company generated ₹10 lakh in revenue last year and ₹12  lakh this year, it reflects a 20% increase in profit Y-o-Y.


How to Understand : 

Y-o-Y analysis reveals how performance metrics have shifted over the course of a year,  indicating trends of growth, decline, or stability.


Importance :

1. This metric is vital for assessing long-term growth trajectories within businesses and  economies.
2.  Y-o-Y comparisons are instrumental in benchmarking the performance of different  organizations.
3. It elucidates economic and financial trends that can impact market dynamics.
4. This analysis aids investors in evaluating the overall strength and viability of a company or market, informing their investment strategies.