1. What is Year-Over-Year Sales Growth?

Year-Over-Year (YoY) growth is a key performance indicator that compares a company's sales from one period to the same period in the previous year. It provides insight into business growth trends and seasonal patterns.

2. How Does the Calculator Work?

The calculator uses the Year-Over-Year growth formula:

Where:

• \( Current \) — Current period sales amount ($)
• \( Prior \) — Prior period (same period last year) sales amount ($)

Explanation: The formula calculates the percentage change in sales between the current period and the same period in the previous year, providing a clear measure of growth or decline.

3. Importance of YoY Growth Calculation

Details: YoY growth analysis helps businesses understand their performance trends, identify seasonal patterns, make informed strategic decisions, and compare performance against industry benchmarks.

4. Using the Calculator

Tips: Enter current sales and prior sales amounts in dollars. Both values must be valid (positive numbers, prior sales must be greater than zero).

5. Frequently Asked Questions (FAQ)

Q1: What is considered good YoY growth?
A: Good YoY growth varies by industry, but generally 10-15%+ is considered strong. Compare against industry averages for context.

Q2: How does YoY differ from quarter-over-quarter?
A: YoY compares same periods year-to-year, eliminating seasonal effects, while QoQ compares consecutive quarters showing shorter-term trends.

Q3: When should negative growth be a concern?
A: Consistent negative YoY growth over multiple periods may indicate underlying business problems that need investigation.

Q4: Can YoY be used for any time period?
A: Yes, YoY can be calculated for any period (monthly, quarterly, annually) as long as you compare equivalent periods.

Q5: How should inflation be considered in YoY calculations?
A: For accurate real growth measurement, consider adjusting for inflation by using constant dollar values rather than nominal sales figures.