Overall, YOY comparisons provide valuable insights into the trends and changes that have occurred over a specific period, helping businesses and individuals make informed decisions based on historical data. Huione Group, a Cambodian conglomerate known to offer legitimate services like remittances, insurance products, and, for a time, luxury tourism offerings, is also known to facilitate cybercrime. Since 2021, Huione Guarantee — an online forum and P2P marketplace affiliated with Huione Group — has processed $70 billion in crypto transactions. YoY is used by businesses and companies who are looking to compare revenue growth rate or change of their company over a specific time frame.
YOY comparison of a company’s revenue can help identify growth trends, evaluate the effectiveness of sales and marketing strategies, and make informed business decisions. In 2024, pig butchering revenue grew nearly 40% YoY and the number of deposits to pig butchering scams grew nearly 210% YoY, potentially indicating an expansion of the victim pool. The combination of lower payment amounts and increased deposits could indicate a change in strategy for pig butchering scams. Scammers could be spending less time priming targets, and therefore, receiving smaller payments, in exchange for targeting more victims. YoY or Forex forecasting Year-over-year comparisons are an effective way to evaluate the financial performance of a company as well as stocks and investments. For business owners specifically, YOY calculations are beneficial for tracking growth and pinpointing, tracking and resolving problems causing stagnation or decline.
In the past year, high-yield investment scams (HYIS) and pig butchering scams received the most crypto among scam sub-classes, at 50.2% and 33.2% respectively. YoY is used by businesses to see how much growth (or loss) they’ve had over a specific time period. YoY (Year-over-Year) growth is a vital metric that provides insights into how a specific variable or aspect of a business has changed over a year. To calculate YoY growth, you need the exact data for the current and previous periods. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, top-rated podcasts, and non-profit The Motley Fool Foundation.
- In contrast to YOY analysis, MOM can highlight short-term fluctuations that may not impact the long-term trend.
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- But effective disruption also requires collaboration between law enforcement, regulators, and the private sector.
In this article, we delve deeper into the concept of YOY, its benefits, how it’s used in finance, and its alternatives. Year-over-year compares a company’s financial performance in one period with its numbers for the same period one year earlier. This is considered more informative than a month-to-month comparison, which often reflects seasonal trends. IFPI reports that Performance rights revenues reached $2.9 billion in 2024, up by 5.9% YoY, marking the fourth successive year of revenue growth. Performance rights revenues represented 9.7% of total recorded music revenues globally.
To get a full picture, YoY should be used alongside other metrics like quarter-over-quarter (QoQ) or moving averages. Pilot is a provider of back-office services, including bookkeeping, controller services, and CFO services. Pilot is not a public accounting firm and does not provide services that bull bear power would require a license to practice public accountancy. The formula to calculate Year-over-Year (YoY) is the current year’s value divided by the previous year’s value minus one. For instance, retailers experience peak demand during the holiday shopping season in the fourth quarter of the year (October to December).
easy steps to calculate your company’s YoY growth
YOY analysis allows investors to quickly gauge if a company’s financial performance is getting better, worse, or remaining static. Great rates can make a Binance cryptocurrency exchange company stand out to investors, especially newer ones, as they’re an understandable, objective company performance measure based on facts and figures. Year over year calculations can also be used by other industries aside from retailers.
How can I make my YoY growth analysis more accurate and reliable?
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- YoY growth provides a clear picture of whether a business is improving or regressing over time.
- Retail giant Macy’s relies on holiday purchases to increase its sales numbers each year.
- Once we perform the same process for revenue in all forecasted periods, as well as for EBIT, the next part of our modeling exercise is to calculate the YoY growth rate.
- Looking at year-over-year comparisons for companies is one of the simplest ways to tell whether they are growing or declining.
- As a result, a company assessing its sales on a YOY basis will reduce the impact of seasonality in its comparison.
Fortunately, calculating the YoY is a straightforward process if you follow these four steps. Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. While MoM is ideal for detecting trends within a shorter timeframe, it’s more prone to seasonal distortions, such as holiday sales spikes or weather-related impacts, making it less reliable for long-term analysis. Month-over-Month (MoM) focuses on short-term changes by comparing one month’s performance to the previous month. This measure captures immediate shifts in performance, such as the impact of a marketing campaign or a sudden market event.
It’s a very simple comparison that says a lot and a way that you can string multiple years of data together to tell a story about your company’s past and potential future trajectory. Some of the primary economic data reported this way are the consumer price index, gross domestic product, unemployment rates, and interest rates. Businesses will also use year-over-year data to calculate key financial performance metrics. Comparing data from the same season or month across different years provides an accurate picture of the overall trends in the business across consecutive years.
When applied on a micro-scale, YOY data can identify seasonal trends and effectively flag areas for improvement and resolution. Year-over-year revenue growth shows how much income a business generates over time. It highlights sales trends, while managers must decide whether the YoY change is influenced by market demand, pricing strategies, or expansion efforts.
There is no one-size-fits-all answer, as what might be considered exceptional growth in one industry could be relatively modest in another. YOY and YTD analyses are complementary and can be used together to provide a comprehensive understanding of performance trends. YOY analysis helps identify year-on-year growth or decline, while YTD analysis allows for monitoring progress and capturing a more up-to-date picture of performance within the current year. Representing more than a quarter of global revenues (29.5%) after revenue growth of 8.3% in 2024, Europe remained the second largest region in the world for recorded music revenues in 2024. Elsewhere, IFPI reports that global physical revenues declined 3.1% YoY and reached $4.8 billion in 2024. IFPI points out in its report that this decline “was set against a very strong performance for the format in 2023, when revenues increased by 14.5%”.
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Amra’s Tomas Ericsson on the future for PROs, songwriter royalties – and an industry crying out for transparency
YOY in cost of goods sold (COGS) analysis highlights changes in production or procurement expenses. It helps businesses identify cost-saving opportunities or supply chain inefficiencies. YOY is short for “Year-Over-Year” which is a calculation used to compare data from one year to another year.
Further, with our recent acquisition of Alterya, we will leverage AI-powered fraud and scam detection to augment our data, and expect our totals to become even more robust than our estimates based on historical increases. Alterya has worked with top cryptocurrency exchanges, fintech companies, and financial institutions to proactively prevent fraud and minimize losses. The year-over-year analysis is central to various financial, economic, and business activities. It calculates the percentage change in a given metric, such as revenue or profit, by comparing it to the same period in the previous year.
In macroeconomics, it can also be used to describe yearly changes in an economy’s employment, money supply, gross domestic product (GDP), inflation, or other broad economic indicators. Year-over-year, often referred to as YOY or YoY is a metric used to compare data from the current year vs. the previous year. Using YoY analysis, finance professionals can compare the performance of key financial metrics such as revenues, expenses, and profit.
QoQ is often used to measure trends in earnings, GDP, or sales during quarterly financial reporting cycles. For example, comparing Q1 revenue from 2024 to Q1 revenue from 2023 reveals sustained growth or decline without being distorted by seasonal fluctuations. YOY is particularly useful for evaluating annual progress in metrics like revenue, profit, or inflation. YOY for annual trends, MoM for short-term insights, and QoQ for quarterly performance analysis. Positive growth rates refer to expanding economic activity, while a decline may indicate recessionary pressures.
Since then, it appears tactics have changed to sending targets text messages with vague job details, sometimes pretending to be from legitimate job boards. “These scams are particularly devious because anyone who has put their resume out there and is looking for a job could easily be hooked by these, especially those desperate for work,” says Eric Heintz, global analyst at IJM. Proofpoint attests that many of these platforms are getting savvier, including registering multiple backup domains for every site in case they are taken down. Scam operators are also likely wisening up to the traceability of cryptocurrency, and are now having victims reach out to “customer service” representatives to obtain a crypto address. Some scammers are foregoing cryptocurrency as a payment option altogether and are instead directing scam victims to other payment services.
