Chinese School - Year on Year

BIZCHINA / Finance/Investment

Year on Year

(answers.com/chinadaily.com.cn)
Updated: 2006-09-27 10:40

A method of evaluating two or more measured events that compares the
results of measurement at one time period with those from another time
period (or series of time periods), on an annualized basis. Year-on-year
comparisons are a popular way to evaluate the performance of investments.
Any measurable events that recur annually can be compared on a
year-on-year basis - from annual performance, to quarterly performance,
to daily performance.

Year-on-year performance is frequently used by investors seeking to gauge
whether a company's financial performance is improving or worsening. For
example, a business may report that its revenues have increased for the
third quarter on a year-on-year basis for the last three years. This
means that revenues at that company in the third quarter of the third
year were higher than revenues in the third quarter in the second year,
which were higher than revenues in the third quarter of the first year.

As another example, a mutual fund that returned 50% last year may have a
year-on-year return of 12%, as the year-on-year return takes into account
each annual return since the fund's inception.

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