Year-over-Year

Year-over-year means comparing a number with the same period one year earlier. In simple terms, year-over-year shows how something changed compared with last year. Year-over-year comparisons are important because they help investors see growth or decline while reducing seasonal effects. Many companies compare quarterly results with the same quarter from the prior year. For example, if revenue was $10 billion this quarter and $8 billion in the same quarter last year, revenue grew 25% year-over-year. Year-over-year is not the same as quarter-over-quarter. Year-over-year compares with last year, while quarter-over-quarter compares with the previous quarter.