**How to Calculate YOY Rise? A Must-Know Financial Report Reading Method for Investors**

In simple terms, YOY (year-over-year rise) is the comparison of this year's data with the same period last year, which can reveal the true growth trend of a company.

**The formula is simple**:
( This year's value - Last year's value ) / Last year's value × 100% = YOY rise %

For example, if the income rises from 1 million to 1.2 million, that is a 20% YOY rise.

**Why look at YOY instead of MoM?**
The retail company's Q4 looks very misleading when compared to Q3 due to the Double Eleven/Christmas surge. However, comparing Q4 2025 vs Q4 2024 can truly reflect whether the company is continuing to rise, without being deceived by seasonal effects.

**Key Significance**:
- Track the real rise of individual metrics such as revenue, profit, and costs.
- Benchmark competitors and identify undervalued companies.
- YOY continues to accelerate = rise engine starts; YOY turns negative = alarm bell rings

It sounds simple, but don't just look at YOY; you need to consider indicators like gross margin and ROE together to get a clear understanding of the company's true value.