raaman
Valued Contributor
What is YoY in Investment?
YOY or year on year is an important indicator for investors to analyze and assess the overall business performance of an enterprise, thereby making appropriate investment decisions. So, what is YOY, and what are the role and meaning of YOY in the field of investment and how to calculate YOY?
YOY is an acronym for a Year on Year. This is a specialized economic term, to compare the economic index of an enterprise in the current year to the next year or a quarter with the next quarter. YOY is a commonly used term in the field of stock investment.
For example, comparing company A's revenue in 2021 and 2022 comparing the operating expenses in the first quarter of 2022 with the operating expenses of the second quarter of 2022, etc. YOY plays an important role in supporting and helping the investors to evaluate production, and business activities of enterprises.
YOY provide an overview through YoY indexes of revenue, gross profit, net profit, operating expenses, etc. In fact, investors use YoY to compare the change in net sales, profits, and earnings of previous periods, and quarters compared to the following quarter. From there, grasp the financial situation and make effective investment decisions.
YOY or year on year is an important indicator for investors to analyze and assess the overall business performance of an enterprise, thereby making appropriate investment decisions. So, what is YOY, and what are the role and meaning of YOY in the field of investment and how to calculate YOY?
YOY is an acronym for a Year on Year. This is a specialized economic term, to compare the economic index of an enterprise in the current year to the next year or a quarter with the next quarter. YOY is a commonly used term in the field of stock investment.
For example, comparing company A's revenue in 2021 and 2022 comparing the operating expenses in the first quarter of 2022 with the operating expenses of the second quarter of 2022, etc. YOY plays an important role in supporting and helping the investors to evaluate production, and business activities of enterprises.
YOY provide an overview through YoY indexes of revenue, gross profit, net profit, operating expenses, etc. In fact, investors use YoY to compare the change in net sales, profits, and earnings of previous periods, and quarters compared to the following quarter. From there, grasp the financial situation and make effective investment decisions.
