If the number is negative, you had a loss. If the number is positive, you had a gain. This will give you the total difference for the year. To start the equation, subtract last year’s number from this year’s number. You can easily get results after pulling your information. Use the year-over-year growth formulaĬalculating year-over-year growth isn’t difficult. But by using smaller time periods, like months, you can help mitigate seasonality issues. Choose your time periodĭo you want to calculate YOY growth between two different months, quarters, or even years? The choice is yours. Once you’ve decided what you’re calculating YOY growth for, gather the numbers for both time periods you are comparing. …As long as you have the numbers for your calculations.
Is it revenue? Number of employees? Marketing KPIs? When finding year-over-year growth, the world is your oyster… Determine what you’re finding YOY growth forįirst things first: you have to decide what area of your business you want to find YOY growth for. There are a few steps you need to take to calculate year-over-year growth for your business. Examining several time periods year-over-year can help you narrow down when you may have made the error. If there are big increases or decreases from last year, you might have incorrectly recorded something. Similar to using a comparative income statement, doing a year-over-year analysis might help you find errors and discrepancies in your books.
YOY growth compares how much you’ve grown in the recent period compared to the past period(s). Year-over-year (YOY) is the comparison of one period with the same period from the previous year(s).
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Read on to learn what is year-over-year growth, why it matters, and how to calculate it (complete with easy-to-follow examples). Having the 411 on your business’s financial health puts you in a better position for decision making.
Do you know how your business is performing this year compared to last? No? Calculate year-over-year growth to find out.