Annualize Data in Formulas
Question
I am creating ratios and several
of them require me to annualize the numerator. For example, in the month of May, take
Net Income for January through May, divide by 5, and multiply by 12 to get the projected
annual income. Each month, you would add another month, thus June would be Net Income
for January through June divided by 6 and multiplied by 12, etc. Can I write a formula
to do this in Adaptive?Answer
You should create an assumption to
represent the month. For example, it would look something like this:
You
would then create a formula to calculate the projected amount. The code of the
account where we are writing the projection formula is called Sample.
if(month(this)=1, div(ACCT.Net_Income, ASSUM.Month)*12,
div(ACCT.Net_Income+ACCT.Sample[time=this-1], ASSUM.Month)*12)