The method of figuring out the share distinction between a particular interval and the corresponding interval within the previous 12 months is a standard analytical approach. For instance, evaluating an organization’s income for the present quarter with its income for a similar quarter final 12 months gives insights into development or decline over that point.
Such a comparability presents vital advantages in varied fields. It helps to mitigate the influence of seasonality, offering a extra correct image of underlying developments. Its historic use stems from the necessity to perceive efficiency relative to previous achievements, notably in assessing the effectiveness of strategic selections and figuring out areas for enchancment.