YoY vs QoQ? MoM, QoQ, YoY

Month-on-month and year-on-year comparisons are both common comparative analysis methods for financial indicators.

Month-on-month growth includes: Month Over Month (or Month On Month) and Quarter Over Quarter (or Quarter On Quarter).

Year-on-year refers to the year-on-year comparison, which is called Year Over Year or Year On Year in English.

The biggest difference between the three is the different values ​​used for calculation:

The monthly month-on-month comparison uses monthly data of different spans, for example, this month is compared with last month, or a compound calculation is made based on the values ​​of the most recent months.

The quarterly comparison is to compare the values ​​of this quarter with those of the previous quarter.

Year-over-year comparisons use data from the same periods in two years, such as comparing the first quarter of this year with the first quarter of last year.

Whether it is month-on-month or year-on-year, the comparison method is to subtract the previous value from the latter value, then divide it by the previous value, and convert the result into a percentage value, or divide the latter value by the previous value, subtract 1 and then convert it into a percentage value.

Relatively speaking, the month-on-month analysis results are more detailed and can be used to discover more subtle changes through calculations. For example, it can be used to measure various monthly data such as turnover, unemployment rate, and consumer price index.

The year-on-year growth rate takes into account the impact of a longer time span, while removing some detailed influencing factors, such as quarterly factors. It is usually used to consider more macro data such as annual profits and GDP. Of course, it can also be used to measure data such as unemployment rates to examine the significance of numerical changes from different angles.

What is the difference between MoM, QoQ and YOY?

Among the three ratios, MoM and QoQ are month-on-month, called “month-on-month” and “quarter-on-quarter”, which are used to compare consecutive single-month values ​​and single-quarter values ​​respectively.

YoY is year-on-year, and can compare single month values, single quarter values ​​or single year values, but the time span is a whole year, that is, compare a certain month, or a certain quarter, or a whole year in the two years before and after.

1. Month-on-month (MoM)

Month-on-month calculation is to calculate the percentage of the change in value to the value of the previous month.