How to calculate the year on year growth rate?

Mondo Finance Updated on 2024-01-30

1. What is the year-on-year growth rate?

The year-over-year growth rate refers to the increase of a data compared with the same digit data in the previous statistical period, and is usually used to indicate the rate of change of a data in the time dimension. The year-on-year growth rate is an important indicator to measure the development speed of a certain data, and it is widely used in various fields, such as economy, society, science and technology, etc.

The year-on-year growth rate is calculated as follows: year-on-year growth rate = (current period - same period) 100% of the same period. The number of the current period refers to the data of the current statistical period, and the number of the same period refers to the data of the same digit in the previous statistical period.

For example, if a company's sales in August this year were 10 million yuan, and the sales in August last year were 8 million yuan, then the company's sales growth rate in August = (1000 - 800) 800 100% = 25%.

Second, how to calculate the year-on-year growth rate?

To calculate the year-on-year growth rate, you need to pay attention to the following points:

1.Data comparability: Calculating the year-on-year growth rate needs to ensure that the data is comparable, that is, the current period and the same period should be the same indicator data to avoid errors caused by incomparability between data.

2.Time period consistency: Calculating the year-on-year growth rate needs to ensure the consistency of the time period, that is, the statistical time of the current period and the same period should be consistent to avoid errors caused by data comparison in different time periods.

3.Data accuracy: Calculating the year-over-year growth rate needs to ensure the accuracy of the data, i.e., the data should be accurate to avoid the transmission and expansion of errors.

4.Correctness of calculation method: Calculating the year-on-year growth rate requires the correct calculation method, that is, according to the formula, to avoid calculation errors or omissions.

Here are two examples to illustrate the actual calculation process:

Example 1: The GDP of a region in the first half of this year was 50 billion yuan, and the GDP in the first half of the same period last year was 45 billion yuan, then the year-on-year growth rate of the region's GDP in the first half of this year = (500 - 450) 450 100% = 111%。

Example 2: If the sales volume of an e-commerce platform is 1 billion yuan on Double 11 this year and 800 million yuan on Double 11 last year, then the year-on-year growth rate of sales on Double 11 this year = (10 - 8) 8 100% = 25%.

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