Year-over-year growth analysis can offer a comprehensive portrayal of a company’s financial development. To compare the growth of a company over the last year, we have to apply a formula. In this tutorial, we will show you how to use the growth over last year formula in Excel.
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Introduction to Year-Over-Year Growth
Year-on-Year (YoY) Growth compares the change in an annualized statistic over two similar periods, often the current and preceding years as of the fiscal year’s close date. This study is commonly used to compare the pace of revenue increase over the last year. Businesses can also use the YOY growth formula, which displays commercial success as a percentage over the last year.
Growth Over Last Year’s Formula
The growth rate is calculated by first determining the ratio of the Current Value to the Prior Value. The growth rate is then calculated by subtracting 1 from the result.
4 Steps to Use Growth Over Last Year Formula in Excel
We’ll use four stages to determine growth over the last year in the following sections. To complete the task, a sample data set is supplied. We gathered the sales value for the previous two years, 2021 and 2022, in our data collection.
Step 1: Calculate the Difference in Growth Over Last Year
- Firstly, to calculate the difference in growth, we need to subtract the Prior Value from the Current Value with the following formula.
- Press Enter to see the difference in growth.
Step 2: Apply Formula to Find Growth Rate Over Last Year
- For calculating the Growth Rate, make a ratio with the subtracted value from Step 1 to the Prior value with the following formula.
- Then, press Enter to get the Growth Rate.
Step 3: Find the Percentage in Growth Over Last Year
- To find the percentage of the Growth Rate, click on the Percentage (%) from the Number tab.
- Finally, you will obtain the value of the Growth Rate in Percentage.
Step 4: Copy the Formula to the Required Cells
- To apply the same formula to fill the column, use the AutoFill Tool to auto-fill the cells.
- Similarly, use the AutoFill Tool to get the Growth Rate Percentage in the last column.
To conclude, I hope this article has given you some useful information about how to use formulas to calculate the growth over the last year in Excel. All of these procedures should be learned and applied to your dataset. Take a look at the practice workbook and put these skills to the test. We’re motivated to keep making tutorials like this because of your valuable support.
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