What is Year-over-Year Growth?
Year-over-Year Growth refers to the comparison of a certain metric over two separate years. It's commonly used in finance, business, and economics to track progress and determine trends.
In simpler terms, it's a way of measuring how much something has increased or decreased year after year. For example, if a company's revenue was $1 million in 2020 and $1.5 million in 2021, their YoY growth would be 50%. This helps businesses understand their performance and make informed decisions.
YoY growth can also be useful for individuals analyzing personal finances or investments. By comparing their net worth or portfolio returns from one year to the next, they can gauge their financial progress and make necessary adjustments.