Year-ending
Encyclopedia
Year-Ending is a 12 month period used for financial and other seasonal reporting.
In the context of finance
, "Year-ending" is often provided in monthly financial statement
s detailing the performance of a business entity. Providing current "Year-ending" results, as well as "Year-Ending" results for one or more past years as of the same date, allows owners, managers, investor
s, and other stakeholders to compare the company's current performance to past periods and annual figures.
, the Year-Ending summaries give a better understanding performance by including the seasonal performance. For example, a sales figure for "Year Ending July 2006" would include the holiday sales from December 2005, while extrapolating from a July Year-To-Date
sales figure would underestimate annual sales.
In contrast to Year-on-Year or Year Over Year figures, which compare similar periods during other years, (for example December 2004 to December 2005), Year-ending is less volatile and are directly comparable to annual figures.
In the context of finance
Finance
"Finance" is often defined simply as the management of money or “funds” management Modern finance, however, is a family of business activity that includes the origination, marketing, and management of cash and money surrogates through a variety of capital accounts, instruments, and markets created...
, "Year-ending" is often provided in monthly financial statement
Financial statement
A financial statement is a formal record of the financial activities of a business, person, or other entity. In British English—including United Kingdom company law—a financial statement is often referred to as an account, although the term financial statement is also used, particularly by...
s detailing the performance of a business entity. Providing current "Year-ending" results, as well as "Year-Ending" results for one or more past years as of the same date, allows owners, managers, investor
Investor
An investor is a party that makes an investment into one or more categories of assets --- equity, debt securities, real estate, currency, commodity, derivatives such as put and call options, etc...
s, and other stakeholders to compare the company's current performance to past periods and annual figures.
Related terms
In contrast to Year-To-DateYear-To-Date
Year-to-date is a period, starting from the beginning of the current year, and continuing up to the present day. The year usually starts on January 1 , but depending on purpose, can start also on July 1, April 1 , and April 6...
, the Year-Ending summaries give a better understanding performance by including the seasonal performance. For example, a sales figure for "Year Ending July 2006" would include the holiday sales from December 2005, while extrapolating from a July Year-To-Date
Year-To-Date
Year-to-date is a period, starting from the beginning of the current year, and continuing up to the present day. The year usually starts on January 1 , but depending on purpose, can start also on July 1, April 1 , and April 6...
sales figure would underestimate annual sales.
In contrast to Year-on-Year or Year Over Year figures, which compare similar periods during other years, (for example December 2004 to December 2005), Year-ending is less volatile and are directly comparable to annual figures.