For periods which are less that than 1 year in length, when calculating certain KPIs (ie. ROCE, ROE, Activity Ratio etc...) it is necessary to annualize results for values like EBIT or Revenue. This is to ensure that annualized result for these values are expressed properly as a percentage of balance sheet values.

In an example for the month of October, which has 31 days:

October Revenue is $96,569.
Annualized revenue = ($96,569 / 31) * 365 =  $1,137,022

If the result is slightly different than expected using this formula, then this will likely be due to the precision and rounding. For instance, the revenue amount may actually include cents (e.g. $96,569.47). 

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