How finance folk use it
Year-to-date (YTD) means the period of time from the start of the calendar or fiscal year until the current date.
This measure of time is often used in finance when measuring the performance of a company or investment product, or changes in an industry.
Is it good or bad?
YTD allows you to view performance as it is right now, instead of having to wait until the end of the calendar or fiscal year. While it may not give you the whole picture, it could give you enough insight to make a decision.
One specific use is in the YTD return. This refers to the amount of profit that an investment has made from the start of the year until the current date.
To get an investment’s YTD return:
Step 1: Subtract its value on the first day of the current year from the current value.
Step 2: Divide the result by the first-day value.
Step 3: Multiply the result by 100 (this converts it to a percentage).
For example, if you’re looking at an investment that was worth P20,000 on January 1 and is valued at P30,000 now, the calculation would be:
P30,000 – P20,000 = P10,000
P10,000 / P20,000 = 0.5
0.5 x 100 = 50% (YTD return)
What it means for you
YTD can give you a performance snapshot if you can’t wait for the result of the entire calendar or fiscal year. This can be helpful if you’re looking to make a decision soon, like whether or not to choose a particular investment or to buy stocks of a certain company.
