A company’s latest financial performance is compared to its data for the same month a year ago to determine its year-over-year growth. When compared to a month-to-month comparison, which frequently reflects seasonal variations, this is thought to be more insightful. Annual, quarterly, and monthly performance are all common YOY comparisons.
Growth from year to year is crucial since it reveals how your business is doing over time. It’s a crucial indicator for founders, and you may use it to evaluate your company in relation to others in your sector.