Year to Date (YTD)
What it is:
How it works/Example:
Let's assume Company XYZ's fiscal year began on January 1 and that today is March 31. During this time, Company XYZ recorded the following:
By adding the revenue from the beginning of Company XYZ's fiscal year to the present, we can calculate that Company XYZ's year-to-date revenue is $4,500,000.
Why it matters:
Year-to-date information is useful in looking for trends or measuring performance against goals.
Comparing year-to-date information among companies with different fiscal-year start dates can distort an analysis: the time included may vary, and seasonal factors may become skewed. It is also important to remember that the extra day in leap years may distort year-to-date comparisons.