1. What is Year Over Year Sales Growth?

Year Over Year (YoY) sales growth is a key performance indicator that measures the percentage change in sales between the current year and the previous year. It helps businesses track performance trends and growth patterns over annual periods.

2. How Does the Calculator Work?

The calculator uses the YoY growth formula:

Where:

• \( Current\ Year\ Sales \) — Total sales revenue for the current year
• \( Prior\ Year\ Sales \) — Total sales revenue for the previous year

Explanation: The formula calculates the percentage change in sales from one year to the next, providing insight into business growth or decline.

3. Importance of YoY Growth Calculation

Details: YoY growth analysis is essential for strategic planning, performance evaluation, investor reporting, and identifying seasonal trends in business performance.

4. Using the Calculator

Tips: Enter current year sales and prior year sales in dollars. Both values must be positive, with prior year sales greater than zero for accurate calculation.

5. Frequently Asked Questions (FAQ)

Q1: What is considered good YoY growth?
A: Good YoY growth varies by industry, but generally 10-20% annual growth is considered strong for established businesses, while startups may aim for higher percentages.

Q2: Can YoY growth be negative?
A: Yes, negative YoY growth indicates declining sales compared to the previous year, which may signal business challenges or market changes.

Q3: How does YoY differ from quarter-over-quarter?
A: YoY compares annual periods to eliminate seasonal variations, while quarter-over-quarter compares consecutive quarters and may be affected by seasonality.

Q4: Should I use gross or net sales for calculation?
A: Use gross sales before returns and discounts for consistent comparison, unless your industry standard differs.

Q5: How often should YoY growth be calculated?
A: Typically calculated annually, but can be calculated monthly or quarterly for more frequent performance tracking.