What is YoY? (Year on Year)

Jakarta, Pintu News – YoY or Year on Year is an analysis method used to compare the performance of data in a certain period with the same period in the previous year. This approach is commonly used in economics, finance, and financial markets to look at growth or decline on an annual basis. By comparing equivalent periods, YoY helps reduce seasonal distortions.

In practice, YoY is often used to analyze corporate earnings, inflation, economic growth, and financial asset performance. For investors and traders, YoY provides a more stable picture of medium to long-term trends than short-term comparisons.

Definition of YoY in Financial Analysis

In financial analysis, YoY is used to measure the change in value of an indicator on an annualized basis in percentage terms. The indicator could be revenue, net profit, asset price, transaction volume, or a macroeconomic metric. The main focus of YoY is to look at the structural direction of growth.

The use of YoY helps analysts understand whether growth is sustainable or temporary. Therefore, YoY is often used as a key metric in financial reports, market research, and fundamental analysis of investment assets.

Also Read: 5 BTC History Facts February often bounces back after January slump!

YoY, QoQ, and MoM Differences

YoY compares this year’s data with the previous year’s data in the same period. Meanwhile, QoQ(Quarter on Quarter) compares performance between consecutive quarters within the same year. Meanwhile, MoM(Month on Month) compares changes between consecutive months.

The main difference between the three lies in the time horizon of the analysis. YoY is more suitable for looking at long-term trends, QoQ for monitoring intermediate changes, and MoM for observing short-term movements that are more sensitive to volatility.

YoY Calculation Formula

The basic YoY formula is quite simple and easy to apply in various contexts. In general, the YoY calculation uses the following formula:

YoY (%) = ((Current Period Value – Last Year Period Value) / Last Year Period Value) × 100%

YoY results are usually expressed as a percentage. A positive number indicates growth, while a negative number signifies a decline compared to the same period in the previous year.

Functions and Benefits of YoY for Investors and Traders

For investors, YoY is useful for assessing the fundamental performance of an asset or company more objectively. With YoY, investors can see if the growth is consistent from year to year. This is important in making long-term investment decisions.

For traders, YoY can be a supporting context in reading larger market trends. While traders tend to focus on short-term movements, YoY data helps avoid decisions that go against the main trend of the market.

Bitcoin Growth YoY Example

For example, suppose the price of Bitcoin in January last year was at USD 30,000 and in January this year it rose to USD 45,000. With an exchange rate of 1 USD = IDR 16,788, the price is equivalent to around IDR 503 million to IDR 755 million. This growth shows a significant increase in value on an annual basis.

Using the YoY formula, the Bitcoin growth is ((45,000 – 30,000) / 30,000) × 100% = 50%. This figure gives a clear picture of Bitcoin’s annual performance without being affected by short-term fluctuations.

Pros and Cons of YoY Analysis

The main advantage of YoY is its ability to filter out seasonal effects and short-term volatility. It provides a more stable and straightforward perspective than monthly or weekly data. In addition, YoY is highly relevant for long-term trend analysis.

However, YoY also has its limitations. It is less sensitive to sudden changes that have only occurred in the near future. Also, if there are large anomalies in the comparative year, YoY results may become less representative and need to be combined with other metrics.

Conclusion

YoY is an important analytical tool in finance and investment to assess growth on an annualized basis. By understanding its definition, formula, and advantages and disadvantages, investors and traders can use YoY more appropriately. Combining YoY with QoQ and MoM will result in a more comprehensive and balanced analysis.

Also Read: Michael Saylor aims to buy Bitcoin when BTC drops to USD 78,000!

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference

• Investopedia. Year-over-Year (YoY): Definition, Formula, and Example. Accessed February 3, 2026
• Corporate Finance Institute. Year-over-Year (YoY). Accessed February 3, 2026