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Finance
Year-Over-Year
A way of comparing a company's performance this year with the same period last year to see real growth or decline.
Year-over-year (YOY) comparisons are more meaningful than month-to-month or quarter-to-quarter because they smooth out seasonal patterns. Analysts and investors use YOY growth rates to judge whether a business is improving.
It's checking your exam results this year against last year instead of against your classmates.
Real world: A company reports Q2 sales of £12 million this year versus £10 million last year — a 20% year-over-year increase. This removes seasonal effects and shows true progress.
💡 Year-over-year numbers show the real story of whether you're getting better over time.