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Business Foundationsbeginner

Year-over-Year Growth

Definition

A metric expressing the percentage change in a key business variable compared to the same period in the previous year, removing seasonal variation to reveal true underlying growth trends.

Why it matters

Year-over-year comparison strips out seasonal patterns that month-over-month misses. A business that peaks every December will always show strong MoM growth in December, but YoY comparison reveals whether December was actually better than last December.

Example

A founder's revenue in Q4 this year is £48,000. In Q4 last year it was £31,000. Her YoY growth for Q4 is 55%, a meaningful signal that the business is genuinely accelerating beyond seasonal patterns.

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