What it is
Year on year or year over year (YoY) is a term used in financial reports to compare data from a certain period with those of a similar period in the previous year.
You can also use it to help you assess the yearly change in some aspects of your personal finances.
Let’s say you were able to save P50,000 in June 2022 and its value increased to P100,000 by June 2023. The percent of change is 100%.
This means your savings grew 100% year on year in June 2023.
What it means for you
As an investor, you will come across YoY comparisons when looking at the performance of a company or investment product. It can help you gauge financial health in terms of revenue or gains and losses.
You can also view month-on-month and quarter-on-quarter comparisons to spot any seasonal trends.
Keep in mind, however, that past performance does not guarantee future results, and so you should make decisions with enough of the right type of data.
