Year Over Year or YOY is a commonly utilized economic tool for contrasting between two or more quantifiable events on an yearly premise.
Examining year over year performance enables for checking if an organization's financial performance is rising, still, or falling.
For instance, in annual reports, you may hear that a specific organization reported its income increased for the second quarter, on a year over year premise, for the last 3 years.
Year Over Year comparisons are a mainstream and viable approach for assessing the financial performance of an organization and the performance of speculations.
Any quantifiable event that repeats every year can be compared on a year over year premise. Common year over year comparisons include yearly, quarterly, as well as month to month performance.
Year Over Year calculations help provide the cross comparison of sets of data.
For an organization's first-quarter income utilizing year over year information, a financial analyst or an investor can contrast years of first-quarter income information and easily ensure whether a organization's income is on the rise or fall.
This year over year examination is likewise important for investment portfolios. Investors like to compare year over year performance to observe how performance varies across time.