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Enter the previous year value in currency.
History:

Explanation

What is Year-Over-Year Growth Rate?

The Year-Over-Year (YoY) Growth Rate is a financial metric used to compare the growth of a particular value over a one-year period. It is commonly used in finance, economics, and business to assess performance, growth trends, and overall health of an investment or business.

How to Calculate Year-Over-Year Growth Rate?

The YoY Growth Rate can be calculated using the following formula:

The formula for Year-Over-Year Growth Rate is:

§§ G = \frac{C - P}{P} \times 100 §§

where:

  • § G § — Year-Over-Year Growth Rate (in percentage)
  • § C § — Current Year Value
  • § P § — Previous Year Value

This formula shows by what percentage the current value § C § has increased or decreased compared to the previous value § P §.

Example:

  • Current Year Value (§ C §): $1,200
  • Previous Year Value (§ P §): $1,000

Year-Over-Year Growth Rate:

§§ G = \frac{1200 - 1000}{1000} \times 100 = 20% §§

This indicates that the value has increased by 20% compared to the previous year.

When to Use the Year-Over-Year Growth Rate Calculator?

  1. Business Performance Analysis: Evaluate how a company’s revenue or profit has changed over the past year.

    • Example: Comparing this year’s sales to last year’s sales.

  2. Investment Evaluation: Assess the performance of investments, such as stocks or real estate, over a year.

    • Example: Analyzing the growth of a stock’s price from one year to the next.

  3. Economic Indicators: Understand economic growth by comparing GDP or other economic metrics year-over-year.

    • Example: Evaluating the annual growth rate of a country’s economy.

  4. Budgeting and Financial Planning: Track changes in income or expenses over the year.

    • Example: Comparing this year’s expenses to last year’s to identify trends.

  5. Market Research: Analyze changes in consumer behavior or market trends over time.

    • Example: Examining the growth in sales of a product category over the past year.

Practical Examples

  • Retail Analysis: A retailer can use this calculator to determine the percentage increase in sales from one year to the next, helping to inform future business strategies.
  • Personal Finance: An individual can track their income growth year-over-year to assess financial progress and make informed decisions about savings and investments.
  • Economic Research: Economists can analyze year-over-year changes in various economic indicators to understand trends and make forecasts.

Key Terms

  • Current Year Value (C): The value of the metric being analyzed for the current year.
  • Previous Year Value (P): The value of the same metric from the previous year.
  • Growth Rate (G): The percentage change calculated to understand the growth or decline of a value over a specified period.

Use the calculator above to input different values and see the Year-Over-Year Growth Rate change dynamically. The results will help you make informed decisions based on the data you have.