What it is:
How it works/Example:
Let's assume Company XYZ'sbegan on January 1 and that today is March 31. During this time, Company XYZ recorded the following:
By comparing the 2012 revenues, we can calculate that Company XYZ was up 50% YOY.to the 2011
Why it matters:
YOY information is useful in looking for trends or measuring performance against goals.
However, remember that comparing YOY information among companies with different fiscal-year start dates can distort an analysis: The time included may vary, and seasonal may become skewed. It is also important to remember that the extra day in leap years may also distort comparisons.