The year-on-year development rate is mainly to eliminate the impact of seasonal changes, and is used to illustrate the relative development rate achieved by comparing the development level of the current period with the development level of the same period last year. The formula for calculating the year-on-year development rate is: year-on-year development rate = current development level 100% of the level of the same period last year.
For example, if the output value in March this year was 3 million yuan, and the output value in March last year was 1 million yuan, then the year-on-year development rate is 300 100 100% = 300%.
The difference between the year-on-year development rate and the month-on-month development rate is mainly reflected in the following three aspects:
The meaning is different: the year-on-year development rate is mainly to eliminate the impact of seasonal and cyclical factors on the data, and it can better reflect the long-term trend and degree of change in the data. The sequential development rate is more reflective of the short-term trend and degree of change in the data.
The calculation method is different: the year-on-year development rate is the ratio of the current development level to the level of the same period last year, while the month-on-month development rate is the ratio of the current development level to the previous period. In other words, year-on-year comparisons are made with historical periods, while month-on-month comparisons are made with previous statistical periods.
Different usage scenarios: The year-on-year development rate is more suitable for the analysis of long-term trends, such as when emergencies such as epidemics have an impact on data, the month-on-month growth rate often fluctuates violently due to emergencies, and the year-on-year growth rate can better reflect the long-term trends and changes in the data. For example, when emergencies such as the epidemic have an impact on the data, the month-on-month growth rate can better reflect the short-term trend and degree of change in the data.
In summary, although the year-on-year development rate and the month-on-month development rate are both used to describe the speed of data change, due to their different meanings, calculation methods and usage scenarios, it is necessary to choose which development speed to use for analysis according to the specific situation.