26 May What is Year to Date (YTD)?
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The period from the beginning of the year to the current date is referred to as the year to date period. The phrase is often referred to by its initialism, YTD.
Business organizations use year to date figures to measure their ongoing performance. Companies often compare the YTD figure for the current year with the corresponding YTD figure for the previous year.
What does year to date mean?
A company’s fiscal year could begin on January 1 or on some other date. If the fiscal year coincides with the calendar year, it would begin on January 1. A company that is reviewing its sales performance on, say, June 18, would calculate its sales figures for the period from January 1 to June 18. The total sales for this period would be referred to as its YTD sales.
What if the fiscal year begins on July 1? In that case, the YTD period would be considered to start on July 1. A review conducted on December 15 would consider the YTD period to be from July 1 to December 15.
Gale Harding, an individual investor, is reviewing the YTD performance of his portfolio on May 26, 2018. The total value of his investments on January 1, 2018, was $392,000. On May 26, 2018, the value has increased to $417,000.
Example of year to date
The YTD gain that Gale has made is $25,000 ($417,000 – $392,000). In percentage terms the gain can be calculated as follows:
- Gain in the YTD period divided by the value at the beginning of the year X 100
- $25,000 divided by $392,000 X 100 = 6.38%
The year to date period extends from the beginning of the year to the current date. Data for this period can be used to gauge the performance up to the date of review and to take corrective action if it is required.