Question on Calendarization for Comp Analysis
Hey guys,
When performing comparable company analysis on a company with a FY other than Dec 31, what information do you actually calendarize for the company's financials (Reported Income Statement Section/Balance Sheet Data Section)?
Also if you do need to change the company's financial, couldn't you just find the exact CY sales with some basic algebra rather than using the calendarization calculation (CY sales = (Month #)(Actual Fiscal Year Sales)/12 + (12 - Month #)(Estimated Fiscal Year Sales)/12) ?
There's no set format for which financials to compare. That's up to the scope & nature of your analysis.
Correct. That's actually how most analysts calendarize. I'm surprised you're mentioning it as it's some alternative/uncommon method.
Thanks for response.
I'm actually trying to spread comps for the first time. Just a student here :/
How Do You Calendarize Financial Statements? (Originally Posted: 12/31/2014)
I need somebody to give me a few DIFFERENT examples of how to calendarize
I know the formula already -- but I need to see tricky, complicated examples and the mathematics associated
Does anybody have the mathematical prowess to create 2-3 examples of different calendarization's
By studying the mathematics, I can gain confidence in implementing TTM/LTM/calenderization
For example: What if it is currently April 20th 2012 and fiscal year ends on August 12th -- HOW THE HELL DO YOU CALCULATE LTM???
Thanks!
PS: there do not appear to be any clear-cut threads on WSO for providing EXAMPLES of both easy and difficult calendarizations
Bump
Bump -- please help!!!
Bump -- please help!!!
You just use the most recent stub period, the latest 10k and the matching stub period from the previous year. If you're asking how to calculate LTM data to the very exact day, then you're asking for the impossible (I think, I may be wrong). Unless you're asking a different question in which you need to elaborate on your question better.
Ok -- maybe this will clarify -- so if I am in the middle of Q4 (like november 15th) then I would use Q3 stubs -- meaning I would not be able to account for any of Q4?
I hope that is clear -- if not let me know
bump -- please just need one more simple answer :)
If you're in the middle of a quarter, you can't calculate LTM as of that date. Companies rarely ever release full financials midway through a quarter. You'd have to calculate LTM as of the latest finished quarter. Its just impossible to do otherwise simply due to a lack of information. Calendarization isn't difficult in any capacity I'd say. Its simply: Latest FYE + Latest Stub Period - Prior Stub Period. There's no real other way to calculate it simply because you don't get financials outside of the quarterly / yearly data.
What Is The Difference Between Calendarization and TTM/LTM? (Originally Posted: 01/03/2015)
This is driving me crazy!
(1) I understand how to calculate TTM
(2) I understand how to calendarize
HOWEVER, I cannot seem to wrap my head around this....
What comes first, TTM or calendarization? This is what I am thinking in my head making me jumbled
Thought #1: If you calculate TTM, then why would you calendarize -- wouldnt you already have LTM financials and therefore for benchmarking purposes be OK regardless of Fiscal Year end dates
Thought #2: If you calendarize, how would you know what to use for TTM -- how could it be accurate if you have completely changed the fiscal year you are using??
I hope my question is clear -- if not, I can try to clarify
Simply put -- what is the difference between TTM and Calendarization -- and can anybody understand why I am confused?
Thanks
TLAB
You calendarize in order to compute LTM/TTM numbers. They are not mutually exclusive.
Calendarizing Financials (Originally Posted: 10/26/2015)
If a company has a fiscal year that ends on June 30, how does one 'calendarize' their financial data so that it can be compared to companies who have fiscal years ending on December 31?
I apologize for the baseness of this question.
If the company reports their Fiscal Year 2015 results in June 30th and you want to have calendar 2015 results you would take 3Q15, 4Q15 and the first 2 quarters of the 2016 Fiscal year (1Q16 and 2Q16).
If the company reports their Fiscal Year 2015 results on January 31 (or any other date that isn't at the end of one of the traditional 4 quarters), how do you calendarize?
You could weight 4Q15 as 1/3 (since only the month of January is relevant and one month is roughly a third of a quarter), take 1Q16, 2Q16, 3Q16 and 2/3 of 4Q16 (take November and December but drop January). To be honest though I'm not sure many people would bother doing this for one month.
Quick Calendarizaiton Question -- Easy Answer! God Bless :) (Originally Posted: 01/09/2015)
Hey guys,
Just wanted to clear up a super quick, easy question
When you calendarize a company with a fiscal year NOT ending on Dec 31 (obviously LOL thats when you calendarize) and using the formula by R&P -- the number that you arrive at (this new sales number) -- does this represent what would be "Dec 31" sales? -- Thanks guys!! you the best -- love to all and all to love :)
THELABULL
It represents the sales from Jan 1 to Dec 31 in X year, yes
thanks :)
Can we apply the method of calendarization discussed above to balance sheet data?
For eg, if my company's financial year ends at June 30 20XX, how can I get the amount of Accounts Receivable as at December 31 (20XX-1)? I was wondering whether it would make sense to calendarize in this example to get the answer since balance sheet line items are stock variables (at a certain date) and I have only seen examples of calendarization with flow variables (over a period).
Thanks.
Hello guys,
Is it possible to use estimated values for an upcoming period to perform a calendarization exercise ?
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