If you’ve ever compared what you earned this summer to last summer, you’ve already done a YoY (Year-over-Year) comparison. It’s that straightforward. But in business and finance, the term carries a lot more weight. Investors, analysts, and entrepreneurs all swear by YoY because it paints a truer picture of growth than most other methods.

So, what exactly does YoY mean? Why is it so widely used? And how can you apply it to your own business decisions? Let’s break it down in plain English.

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