YTD refers to financial results from the beginning of the year to the current date – Image Credit: Visitor7 (CC by SA-3.0).
In financial analysis, year-to-date (YTD) refers to a financial results figure calculated using data from the first day of the year to the current date. This may refer to the calendar year, in which case the beginning date is January 1, or the fiscal year used by the company or entity, in which case the start date may be something different. YTD measures are generally compared to the corresponding measure from the same part of the previous year in order to determine how well a company is performing. For instance, a company’s YTD sales for April 30 2018 might be compared to sales made from January 1 to April 30 in 2017. If the YTD sales results are significantly lower than they were at the same time the previous year, the manager knows that the company needs to improve its performance.
Year-to-date can also refer to returns. In this case, the YTD return is the profit produced by an investment since the start of the calendar year, usually expressed as a percentage. As with the above example, YTD returns are used by investors and analysts to judge a stock’s ongoing performance. YTD is also used in personal finance in application to earnings and net pay.
Recent Comments