Posted in Finance, Accounting and Economics Terms, Total Reads: 1248
Definition: Year over Year (YOY)
Year over Year (YOY) is a method to compare a parameter or a value e.g.
company's financial performance or income/profit with same parameter's value
exactly an year back. Any parameter that can be measured can be evaluated using
yoy. Even performance within a time period e.g. quarter Q1 can be compared with the
same period in the previous year.
Various financial instruments can be
evaluated with YOY e.g. Mutual funds, companies financial performance, shares,
Year over Year(YOY) is mainly useful in showing the trends of a
parameter/financial value whether the value is on a growth path or a decline
If a company claims that their share price on Jan 1 of current has risen YOY in
last 5 years. This means that the companies share price currently is more than last
year's share price. now if they say 5 years, this means that last years share price
was more than its previous year and so on till 5th year.