How To Calculate Yoy Revenue Growth

How to calculate yoy growth.

How to calculate yoy revenue growth. Year over year yoy is an effective way of looking at growth for two reasons. For example say your business revenue rose 20 last month. Yoy growth is also about a lot more than just revenue. Do you want to calculate yoy growth between two different months quarters or even years.

Before you break out the bubbly check it against the income from the same month last year. Revenue growth is a measure used by fundamental analysts to see how well the company is bringing in sales. First it removes the effects of seasons. Now that you know why it s useful you have a better frame of reference to evaluate your yoy growth calculations.

You can find this in the annual report or the 10 k. Conversions average sale value and other metrics that are related to but go beyond your bottom line. You can measure myriad aspects of your growth. Step 1 obtain the income statement for the company for which you would like to calculate revenue growth.

Calculating year over year growth isn t difficult. Both of these documents are mandatory for public companies and you can usually. You can easily get results after pulling your. Maybe your sales always rise this time of year.