Web Trader MT5
YOY, short for year over year, compares a result with the same period one year earlier. It is commonly used for revenue, profit, inflation, employment, and trading volume because it reduces the distortion created by seasonal changes.
A retailer may report fourth-quarter revenue of $108 million, up from $100 million in the same quarter last year. That is 8% YOY growth. Comparing the figure with the third quarter could produce a very different result simply because holiday demand changes the pattern.
YOY gives a clean annual comparison. Analysts often place it beside monthly or quarterly figures to see both the longer trend and the more recent movement.
