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Annaulizing Sales in Excel

Yandeez

Yandeez

Member
Hi-

If I have YTD Sales per customer, can I annualize sales by taking the the YTD #, dividing it by the # of elapsed days in the year and multiplying by 365?

Ex: YTD Sales is 178 and today is 9/25/14. Can I do (178/244)*365? Is that the correct way to annualize sales?
 
@Yandeez

AFAIK .. this is a correct approach..I follow the same approach for one of my reports..

May be experts have some other take on this...

Regards
Asheesh
 
I'm not a financial guy, but the math seems right. From an XL standpoint, I'd accomplish this by having with today's date (either manually typed as a form of date stamping, or with the TODAY() function). Then, if date is in A1, and sales are in A2, formula is:
=A2/(A1-DATE(YEAR(A1),1,1))*365

Other small deviation I might think of including would be to switch to using work days rather than calendar days. Would only be a small variation, but might make a difference, depending on your industry.
 
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