Why is this necessary?
When calculating year-to-date (YTD) results for certain KPIs (e.g. ROCE, ROE, Activity Ratio, etc.), it is necessary to annualise results for values like EBIT or Revenue. This ensures that annualised results for these values are expressed properly as a percentage of balance sheet values.
Example: For the month of October, which has 31 days:
October Revenue is $96,569.
Annualised revenue = ($96,569 / 31) * 365 = $1,137,022
If the result is slightly different from what is expected using this formula, it's likely due to the precision and rounding. For instance, the revenue amount may include cents (e.g. $96,569.47).
Can I create my own annualised KPIs?
You can create your own annualised custom Formula KPIs within Fathom.
Example: The annualised Revenue formula is:
Annualised Revenue = Revenue / Period Length x 365
'Period Length' is a default 'Other' variable you can include in your formula. Search for variables by clicking '+ Add variable' in the KPI formula builder.
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