The next step to obtain the YOY value for revenue is simple we only need to calculate the difference between revenue for 2020 and revenue for 2019. In other words, if the current record is for 2020, LAG(revenue) will return the value of the revenue column for the year 2019. In this example, we are using the LAG() window function to obtain the value of the column revenue for the previous record. LAG(revenue) OVER ( ORDER BY year ) AS Revenue_Previous_Year Now, let’s see an example of a SQL query that returns the revenue for each year and its preceding year: Understanding SQL window functions and the OVER clause will help you with the concepts we’ll discuss in this article. If you want to review the basics of window functions, I suggest the article What Is the Over Clause?. You can also order the records in the window by different criteria and then use functions like FIRST_VALUE(), LAST_VALUE(), LEAD(), or LAG() to return the value from specific records in relation to the current record.
The set of records is defined by the OVER() clause this clause is mandatory for window function. They return the result of applying a function (like MAX(), AVG() or COUNT()) to a set of records (which is called the “window”) in a table. Window functions are a very powerful SQL feature. Also, the article When Do I Use SQL Window Functions provides a lot of example queries that you may find helpful. Before that, I would like to suggest ’s Window Functions course, where you can learn the basics of SQL window functions.
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In the next section, we’ll explain how to query the yearly_metrics table using SQL to obtain the values in the YOY column. In the next image, we can see these values in the yearly_metrics table. Let’s start by showing the base table, where we have the metrics for 20. In this article, we will explain how we can calculate the values in the YOY column. This lets us better understand how our organization performed in the last year and what areas can be improved: Metrics If we add a third column called YOY, we can easily see the variation from year to year. In the following table, we can see the results for 20: Metrics sales, profits, number of customers) to better understand how different business indicators are evolving. Moreover, year-to-year comparisons can be applied to different metrics (e.g. This is the reason for year-to-year comparisons: You can easily see if your organization is doing better (or worse) than last year. However, one key performance indicator is periodic growth: the comparison of your company’s current results against the same metric from a previous time period. Sometimes we can compare against similar companies or with the average of several companies in the same market. To know if a business organization is performing well, we usually need to do a comparison based on business metrics. In this article, we are going to learn how to calculate year-to-year and month-over-month differences using SQL.Īre you ready to invest in your SQL skills? Let’s go! What Are Year-Over-Year Metrics From a Business Perspective? However, calculating this metric in SQL is not so easy! it’s easy to understand that your revenue growth is 35% year to year. Year to year differences are easy to understand – e.g. Year-over-year (YOY) comparisons are a popular and effective way to evaluate the performance of several kinds of organizations. How did your business do this year compared to last year? The year before? Find out how to use SQL to calculate year to year and month to month differences.
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