Why is YOY preferred over other metrics?

[accountingbyte]

YOY is given preference because it gives uncomplicated and unclouded comparison linked with the same time periods. This is because, unlike the Month over Month (MOM) or Quarter over Quarter (QOQ) methodologies, YOY covers seasonal effects. For instance, the product sale of some retail stores is known to go high when there are festivities or holidays. While comparing sales of December to November may be a good sign, a yearly comparison demonstrates genuine yearly tendencies. YOY makes such data easily understandable, enables the identification of trends for the longer term, and reveals whether certain strategies, or changes in the environment, have contributed to growth or decline over the years.

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