What is Year to Date?
YTD stands for “year to date” and represents the time period from the beginning of the fiscal year to the present date.
How to Calculate Year to Date Financials (Step-by-Step)
Year to date (YTD) refers to the period between the beginning date of the fiscal year to the current date, or the most recent reporting period, such as the latest quarterly report.
By measuring YTD performance, a company can assess its performance to date and determine how its current trajectory compares to its prior periods and internal forecasts, as well as for benchmarking purposes with comparable companies in either the same or an adjacent industry.
The trend of the company’s sales performance, or alternatively the returns on a portfolio, can be useful for understanding the current state of its performance and if adjustments are necessary in order to reach the goals set by the management team.
For most companies, the starting date of the fiscal year tends to be January 1st, however, there are companies such as Apple (AAPL) with fiscal years that begin on different dates.
Apple Fiscal Year Ending Date Example (Source: Apple 10-K)
YTD Formula
The formula to calculate year to date (YTD) performance or returns is as follows.
YTD Returns Calculation Example
In order to convert the decimal value into a percentage, the resulting figure must be multiplied by 100.
For example, if an investor’s portfolio was worth $200,000 at the beginning of 2022 and is currently worth $220,000 in the middle of 2022, the year to date return is calculated as 10%.
- Year to Date (YTD) = [($220,000 – $200,000) ÷ $200,000) = 0.10, or 10%
