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YoY
(Year-over-Year)
YoY compares a metric with the same period from the previous year (e.g., Q1 2023 vs Q1 2022), eliminating seasonal fluctuations that distort MoM comparisons. Retailers report 60% of earnings surprises using YoY metrics.
YoY growth is calculated as (Current Period - Prior Period)/Prior Period. A company with $100M Q1 2022 revenue and $120M Q1 2023 revenue has 20% YoY growth. This metric is crucial for seasonal businesses (retail holiday sales) and cyclical industries. Analysts prefer YoY for trend analysis, though rapid-growth companies may use YTD for more current data. During economic shifts (like post-pandemic reopenings), YoY comparisons can be distorted - 2021 travel bookings showed 500% YoY growth from depressed 2020 levels.
YoY growth is calculated as (Current Period - Prior Period)/Prior Period. A company with $100M Q1 2022 revenue and $120M Q1 2023 revenue has 20% YoY growth. This metric is crucial for seasonal businesses (retail holiday sales) and cyclical industries. Analysts prefer YoY for trend analysis, though rapid-growth companies may use YTD for more current data. During economic shifts (like post-pandemic reopenings), YoY comparisons can be distorted - 2021 travel bookings showed 500% YoY growth from depressed 2020 levels.