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) ?

Comments (26)

 
Mar 16, 2012 - 11:04am

ikiq:
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)?

There's no set format for which financials to compare. That's up to the scope & nature of your analysis.

ikiq:
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) ?

Correct. That's actually how most analysts calendarize. I'm surprised you're mentioning it as it's some alternative/uncommon method.

__________
 
Mar 16, 2012 - 4:09pm

SaucyBacon85:
ikiq:
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)?

There's no set format for which financials to compare. That's up to the scope & nature of your analysis.

ikiq:
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) ?

Correct. That's actually how most analysts calendarize. I'm surprised you're mentioning it as it's some alternative/uncommon method.


simply enjoying your profile pic
 
Mar 16, 2012 - 4:10pm

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

LA Bull
 
Mar 16, 2012 - 4:14pm

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.

 
Mar 16, 2012 - 4:20pm

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

LA Bull
 
Mar 16, 2012 - 4:26pm

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

LA Bull
 
Jun 22, 2018 - 7:54am

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.

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