Vertical Financials
Profitability

Year-over-Year (YoY)

Definition

Comparing a period's results with the same period last year, which removes seasonal swings from the comparison.

Formula

YoY Growth % = (This Period − Same Period Last Year) ÷ Same Period Last Year × 100

For seasonal e-commerce brands, comparing November with October tells you little. Comparing it with last November tells you how the business is really trending.

Adjust for calendar shifts, like which week Black Friday falls in. Watch for: YoY comparisons using books that were restated or cleaned up, which can make growth look different than it was.

Example

November sales of $380,000 versus $310,000 last November is 22.6% YoY growth.

Terms that reference this

Sign up for our Bottom Line business newsletter

One short email a month — practical, no-nonsense takes on cash, margin, and the numbers behind growing businesses. No spam.