Create Date: September 16, 2024
Last Modified Date: December 2, 2024
Calculating year over year growth only requires two variables:
Your answer will be a single percentage. This percentage represents the growth between the starting value and the final value. This value can be negative as there are times where the final value will be less than the starting value. It is also possible for the YoY growth to be zero percent, this would be unlikely but in the case that there is no change at all between the values.
Using this year over year growth tool is very simple. To do so, follow these steps:
Let's say we run a ice cream company. We want to evaluate our year over year growth with the help of this tool. Last year, or our starting year in this case, our operation was worth $250,000. At the end of the next year we have a new value, or final value in this case, of $289,000.
To get our year over year growth we start by entering 250,000 into the starting value field and then 289,000 into the final value field. We hit calculate and get a YoY growth of 15.6%
What is considered to be a good year over year growth is dependent on your industry, size, location, and other factors. A good YoY growth is one where you see yourself pacing with your competitors or growing faster than them.
No, a proper year over year growth measure will only be comparing the value of something between two 12-month periods.
