A common business metric involves comparing a particular metric’s value in one month against its value in the preceding month. For instance, if a company generated $100,000 in revenue during June and $120,000 in July, the change represents a 20% increase. This method provides a clear, concise view of short-term trends, often expressed as a percentage change.
Tracking such periodic changes offers valuable insights into business performance, allowing for timely identification of growth or decline. This information is critical for informed decision-making, strategic adjustments, and resource allocation. Its use has become increasingly prevalent with the rise of data-driven business practices, enabling organizations to respond dynamically to market fluctuations and operational shifts. This approach provides a granular view of performance, which complements longer-term analyses and aids in identifying seasonal patterns.