Annualised

Annualised refers to the process of converting a metric or value that is measured over a shorter period into an equivalent value over a full year. This is commonly done for financial data, such as profits, revenues, or expenses, that are reported quarterly or monthly. By annualising, businesses and investors can gain a clearer understanding of a company's performance on a consistent, yearly basis, allowing for better comparison between different periods or entities.

The calculation typically involves multiplying the value from the shorter period by the number of such periods in a year. For example, if a company's profit for a quarter is $1 million, annualising this profit would involve multiplying it by four (since there are four quarters in a year), resulting in an annualised profit of $4 million. Similarly, if a monthly revenue is $500,000, annualising it would mean multiplying by twelve to get an annualised revenue of $6 million.

While useful for projecting annual performance, it's important to note that annualised figures are projections and not actual results. They assume that the performance observed in the shorter period will continue consistently throughout the entire year. Unexpected events, seasonal fluctuations, or changes in market conditions can cause actual annual results to deviate significantly from the annualised figures. Therefore, annualised data should be used with caution and considered alongside other relevant information.