Revenue (Year On Year Growth)
Returns the year-over-year (YoY) revenue growth, comparing the most recent annual revenue to the prior year.
Calculation
YoY Growth = (Current Year Revenue - Prior Year Revenue) / Prior Year Revenue
Interpretation
| YoY Growth | Interpretation |
|---|---|
| > 20% | High growth |
| 10-20% | Strong growth |
| 5-10% | Moderate growth |
| 0-5% | Slow growth |
| < 0% | Declining revenue |
Notes
- Returns value as a decimal (0.12 = 12%)
- Based on trailing twelve months vs prior period
- Most recent annual comparison
Examples
When to Use
- Evaluate recent revenue trends
- Compare annual performance
- Identify growth acceleration/deceleration
- Quick growth screening
When NOT to Use
| Scenario | Use Instead |
|---|---|
| Quarter-over-quarter growth | QoQGrowth() |
| Long-term CAGR | RevenueGrowthFiveYearCAGR() |
| EPS growth | EPS growth functions |
| YoY quarterly comparison | QuarterlyRevenueGrowthYOY() |
Common Issues & FAQ
Q: Why is the value less than 1? A: Growth is returned as a decimal. Multiply by 100 to get percentage (e.g., 0.12 = 12%).
Q: How does this differ from CAGR? A: YoY is a simple one-year comparison. CAGR compounds over multiple years and smooths volatility.
Q: Can this be negative? A: Yes, negative values indicate revenue declined compared to the prior year.
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