1. What is YoY Growth Rate?

Year-over-Year (YoY) growth rate is a key performance indicator that compares a company's current period performance with the same period in the previous year. It helps eliminate seasonal effects and provides a clearer picture of true growth.

2. How Does the Calculator Work?

The calculator uses the YoY growth formula:

Where:

• \( Current\ Period \) — Value for the current period
• \( Previous\ Period \) — Value for the same period in the previous year

Explanation: The formula calculates the relative change between two comparable periods, showing growth or decline as a percentage.

3. Importance of YoY Calculation

Details: YoY growth is crucial for business analysis as it provides a normalized view of performance across different time periods, helping identify trends and make informed decisions.

4. Using the Calculator

Tips: Enter the current period value and the previous period value (both positive numbers). The previous period value cannot be zero.

5. Frequently Asked Questions (FAQ)

Q1: Why use YoY instead of sequential growth?
A: YoY growth eliminates seasonal variations that can distort sequential (month-to-month or quarter-to-quarter) comparisons.

Q2: What does negative YoY growth mean?
A: Negative YoY indicates a decline in performance compared to the same period last year.

Q3: How is YoY different from CAGR?
A: YoY measures growth between two specific periods, while CAGR (Compound Annual Growth Rate) shows the smoothed annual growth rate over multiple periods.

Q4: Can YoY be used for any time period?
A: Yes, as long as you're comparing equivalent periods (e.g., Q1 2023 vs Q1 2022, or January 2023 vs January 2022).

Q5: What's a good YoY growth rate?
A: This varies by industry, but generally a positive YoY growth rate is desirable, with higher rates indicating stronger performance.