What is Year-Ago Actuals?

191 reads · Last updated: December 5, 2024

Year-ago actuals refer to the actual data from the previous year that corresponds to the current reporting period. It is used to compare the data of the current period with the data of the same period last year in order to understand the growth trend of a company or project.

Definition

Year-ago actuals refer to the actual data from the previous year corresponding to the current reporting period. It is used to compare current period data with that of the same period last year to understand the growth trend of a business or project.

Origin

This concept originated from the need for financial analysis and reporting, helping businesses and investors evaluate current performance through historical data comparison. With the development of financial management and analysis tools, this concept has gradually become a standard financial analysis metric.

Categories and Features

Year-ago actuals are primarily used in financial statement analysis, including comparisons of key indicators such as revenue, profit, and costs. Its feature is to intuitively reflect changes in a company's performance over the same time period, helping to identify seasonal trends and abnormal fluctuations. Application scenarios include quarterly reports, annual reports, and monthly financial analyses.

Case Studies

Case 1: A retail company reported revenue of 50 million yuan in the first quarter of 2023, compared to 45 million yuan in the same period of 2022. By comparing year-ago actuals, the company can see an 11.1% increase in revenue, providing valuable insights into the effectiveness of market expansion and sales strategies.

Case 2: A manufacturing company had production costs of 30 million yuan in the second quarter of 2023, compared to 32 million yuan in the same period of 2022. By comparing year-ago actuals, the company found a 6.25% reduction in costs, possibly due to improved production efficiency or lower raw material costs.

Common Issues

Common issues include how to handle the impact of seasonal fluctuations on year-ago actuals and how to make effective comparisons when data is incomplete or inaccurate. It is usually recommended to use adjusted data to eliminate the effects of seasonal factors and ensure data accuracy and completeness.

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