Year to Date (YTD)

What Is Year to Date (YTD)?

In its most straightforward form, year to date is used to reference the period of time that has passed from the start of the year to the present time.

It’s important to note that year to date – when used in reference to business – may not actually refer to January 1st to the present time. A lot of organizations have fiscal years that are not bound by the traditional calendar.

Why Is Year to Date (YTD) Important?

Year to date is primarily used to measure the performance of a company against its business goals.

It’s important to understand that year to date comparisons for businesses with different fiscal year start dates can be tricky – you can end up with distorted data. It’s also key to note that seasonal trends and leap years can distort the analysis when comparing year to date data.

YTD Examples

Year to date Returns – this refers to the amount of profit that has been made since the first day of the fiscal year.

Year to date earnings – this refers to the amount of money that any given individual has earned from the start of the fiscal year to the present date.

Year to date net pay – this refers to the difference between what an employee has earned and the withholdings from those earnings.

How Do You Calculate Year to Date (YTD)?

Calculating year to date return on investment (ROI) is relatively simple.

First, subtract the value from the first day of the current fiscal year from the current value. Then, divide the difference by the value of the first day. You then need to multiply that by 100 to convert it into a percentage.

Here’s a quick example:

If a portfolio was worth $100,000 on the first day of the fiscal year, and it’s now worth $150,000, then the year to date return would be 50%.

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See our full list of over 50 Small Business Terms here. 

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