1. What is Year Over Year (YoY) Increase?

Year Over Year (YoY) increase is a comparison of one year's performance with another's, expressed as a percentage change. It's commonly used in financial analysis to measure growth rates of prices, revenues, or other metrics.

2. How Does the Calculator Work?

The calculator uses the YoY increase formula:

Where:

• Current Year Price — The price in the current period
• Previous Year Price — The price in the comparison period

Explanation: The formula calculates the percentage change between two annual periods, showing how much a price has grown or declined.

3. Importance of YoY Calculation

Details: YoY comparisons are valuable because they eliminate seasonal variations and provide a clearer picture of long-term trends in pricing, sales, or other business metrics.

4. Using the Calculator

Tips: Enter both current and previous year prices in currency format. The previous year price must be greater than zero for the calculation to work.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between YoY and sequential growth?
A: YoY compares the same period in different years, while sequential growth compares consecutive periods (e.g., quarter to quarter).

Q2: Can YoY be negative?
A: Yes, a negative YoY indicates a decrease in price compared to the previous year.

Q3: How is YoY different from CAGR?
A: YoY shows annual changes, while CAGR (Compound Annual Growth Rate) shows the smoothed annual growth rate over multiple years.

Q4: When is YoY analysis most useful?
A: For seasonal businesses or when comparing performance across the same business cycle periods.

Q5: What are limitations of YoY analysis?
A: It doesn't account for inflation and may mask short-term trends between the compared periods.