Year to date

Definition

Year to date (YTD) in business and finance refers to the period beginning from the first day of the current calendar year up to the present date. It is a commonly used term to analyse and report financial performance over a specific time frame within a fiscal year.

What is year to date?

YTD always starts on January 1st and extends up to the current date and is often used for comparative analysis. By comparing the YTD performance of the current year with the same YTD period of previous years, businesses can assess trends and make informed decisions.

YTD figures play a crucial role in budgeting and forecasting. They provide insights into how well a company is performing relative to its budgeted targets for the year. 

It’s important to note that YTD figures may not provide a complete picture of a business’s financial health. Depending on the industry and specific circumstances, other time frames or metrics may also be crucial for a comprehensive assessment.

Example of year to date

ABC Corporation, a retail company, is reviewing its financial statements at the end of the third quarter. The company’s income statement shows that its year-to-date (YTD) revenue is R2.5 million.

This YTD revenue figure represents the total sales revenue generated by ABC Corporation from January 1st up to the end of the third quarter, which is typically September 30th.