Month-over-month vs year-over-year: which to use
Two comparisons answer two different questions, and picking the wrong one can mislead you.
Month over month
Compare this month with the last one to see momentum. It is quick but can be distorted by seasons. December sales compared with November will often jump for reasons that have nothing to do with how well you are doing.
Year over year
Compare this month with the same month last year to remove the season. It shows real growth, but only if you have at least a year of data and the business has not changed a lot.
Be fair
Compare complete periods. If this year is not finished, compare the same number of months in both years.
In Super B.A.: Ask the assistant “compare this year with last year” to see revenue and profit for both years. Open the app
Related guides
- Why did my profit fall? A four-step check
- What a trend line can and cannot tell you
- How to read a simple profit and loss summary
General information for learning. It is not financial, tax, legal or investment advice.