Month Over Month (MoM)

Month Over Month (MoM) is a metric used to compare data points, such as sales, revenue, or active users, from one month to the next. MoM growth or change is often used by businesses to assess their performance and identify trends over a short period of time. It is particularly useful in fast-moving industries or companies where growth is rapid and immediate feedback is necessary for operational decisions.

The formula for calculating Month Over Month (MoM) change is:

MoM Growth = (Current Month Value - Previous Month Value) / Previous Month Value x 100%

For example, if a company’s sales for April are AED 100,000 and the sales for March were AED 90,000, the MoM growth would be:

MoM Growth = (100,000 - 90,000) / 90,000 x 100% = 11.11%

MoM comparisons are especially helpful when identifying patterns or short-term fluctuations in a company’s performance. A high MoM growth rate typically indicates that the company is scaling quickly, while a negative MoM growth rate might suggest issues with product-market fit or customer retention.