Year Over Year

Year over year (YoY) is a method of comparing a financial metric or data point from one period to the same period in the previous year, allowing for meaningful comparisons that account for seasonal variations. It is commonly used to assess growth or decline in revenue, earnings, inflation, and other economic indicators. YoY comparisons provide a cleaner picture of performance trends than sequential month-to-month data.

A trader reviewing a company's quarterly earnings report might focus on YoY revenue growth to determine whether the business is genuinely expanding. If a retailer reports that Q3 revenue grew 15% year over year, it suggests underlying business momentum regardless of seasonal patterns. For macro traders, YoY data such as inflation figures or GDP growth provides important context for central bank policy decisions, which in turn drive currency and interest rate markets.