Year-over-Year (YoY) is a widely used financial and analytical metric that compares the performance of a company, stock, or economic indicator in one period (usually a month or quarter) to the same period in the previous year. This comparison helps investors and analysts evaluate how a business or the market has grown or declined over time, eliminating short-term seasonal effects.

In simpler terms, YoY growth measures progress by showing the percentage change between two comparable periods. For example, if a company reports revenue of _100 crore in Q1 2024 and _120 crore in Q1 2025, it has achieved a 20% YoY growth. This metric is especially useful for tracking long-term performance trends, assessing business stability, and identifying growth patterns in revenues, profits, or market share.

From an investor’s perspective, YoY analysis provides a clearer picture of a company’s operational efficiency and financial health. It helps filter out short-term volatility caused by market sentiment or one-off events, allowing for more informed decision-making. Analysts often use YoY comparisons alongside other metrics like Quarter-over-Quarter (QoQ) growth and Compound Annual Growth Rate (CAGR) for a holistic view of performance.

In the stock market, YoY figures are also applied to broader indicators such as GDP, inflation, and corporate earnings to evaluate the economy’s direction. For instance, a consistent YoY rise in earnings across sectors may indicate economic expansion, while a decline could signal slowdown concerns.

Understanding Year-over-Year growth is essential for investors, analysts, and businesses alike, as it supports data-driven insights and long-term strategy planning — aligning with responsible investing principles and SEBI-compliant financial analysis.