YTD meaning



To track stock quotes, their dynamics and predict price movements, as well as to carry out financial reporting for the company, it is necessary to calculate and select time intervals. For calculations, financiers use special time intervals for specific dates or periods, for example, monthly, quarterly or semi-annual reports.

YTD meaning


What does YTD mean?

Often a dynamically changing time interval is used, which starts from the first of January of the current year. This interval is called YEAR TO DATE or YTD for short. Let's take a closer look at what it is and how it is applied.

What is YTD: definition and purpose

Year to Date starts from the beginning of the year and continues to the present. Those. its right time boundary changes. YTD is used in many financial contexts, mainly to record the results of activities between a date (this date is excluded because today is not complete) and the beginning of the year.

In the context of year-to-date finance, financial statements often provide detailed information about a company's performance. Providing current year-to-date results, as well as year-to-date results for one or more past years on the same date, allows owners, managers, investors, and other stakeholders to compare a company's current results with those of past periods. Employee income tax can be based on total income in the tax year to date.

YTD meaning


YTD meaning: examples

YTD describes the return of scores relative to a given year. For example: since the beginning of the year, the return on shares is 8%. This means that from January 1 of this year to date, the shares have risen by 8%.

As another example, real estate rental income for the year to date (year-to-date) (where the end of the fiscal year is December 31, 2008) is $1,000 as of March 30, 2009. This means that the property generated $1,000 in rental income between January 1 and March 30, 2009 (year-to-date).

Comparison of indicators from the beginning of the year can be misleading if the year has just begun or the control date has not been determined. Year-to-date indicators are more sensitive to early changes than to late ones.

Example: To calculate the current invoicing for a company, the total invoices for each previous month of the current year are added to the total invoices for the current month to date.




Stock example

With YTD, you can explore the behavior of stock prices.

Value by month2017,
growth
2017 YTD, growth
January1%1%
February2%3%
March-1%2%
April2%4%
May2%6%
June-6%0%
July-8%-8%
August4%-4%
September3%-1%
October3%2%
November-1%1%
December6%7%

In this way, YTD can show the monthly movement of stock prices, as well as the annual increase or decrease in value.




Sales example

Let's say company A sells brand B. We analyze the monthly quantity of goods sold over two years. Using the calculated YTD indicator, you can assess the strength of the trend and the growth or fall in demand for a product. An example is shown in the table.

Sales, by month2017,
Qty
2018, Qty2017 YTD, Qty2018 YTD, QtyYoY growth, %
January50 00060 00050 00060 00020%
February45 00055 00095 000115 00021%
March45 00065 000140 000180 00028%
April55 00065 000195 000245 00026%
May50 00060 000245 000305 00024%
June55 00070 000300 000375 00025%
July60 00075 000360 000450 00025%
August55 00065 000415 000515 00024%
September65 00075 000480 000590 00023%
October60 00075 000540 000665 00023%
November60 00080 000600 000745 00024%
December70 00085 000670 000830 00024%

This example shows that the minimum growth was observed at the beginning of 2019 (20-21%), and the maximum growth in March was 28%. The average growth of YTD compared to the previous year was 24%. Therefore, with the help of YTD, you can adjust the plan, monitor its implementation, analyze supply and demand, and the possible amount of goods that will be needed for the next year.

YTD meaning


Conclusion

Year to Date allows you to:

Track the accumulated value of sales for each month relative to the beginning of the year.Record the overall rise or fall in stock prices starting January 1st.

The YTD indicator can be found in various stock charts (stocks, bonds, funds, etc.) or financial statements (companies or countries).

If there is a comparison with a period from previous years, then it is important to compare YTD indicators date to date or month to month. For example, YTD for April 2020 can be correctly compared with the same indicator for April 2021.