What is the relationship between actual, annualised and year to date (YTD) figures?
SAP SuccessFactors Workforce Analytics
Please see below explanation of the behavior.
Suppose that a Production site contains "data as of" April 30, 2010. External Hires figures for the months of 2010 so far are as follows:
- January - 11
- February - 13
- March - 17
- April - 9
Assume that the following results are shown in Calendar Year. (Fiscal Year works the same way if you substitute July-October for January-April.)
External Hires/Recruits for 2010, Actual: 50. When a year is not yet complete, the total for the year to date (YTD) is used.
External Hires/Recruits for 2010, Annualised: 150. In principle, the annualised figure is what would be reached at the end of the year if the remaining months had the same average total as the months so far.
Explicitly put: Annualised total =
[YTD total] * 12 / [months so far] or
[YTD total] / [months so far] * 12.
In addition, it is fairly easy to annualise a YTD figure mentally, depending on which month is current.
In the above case: four months is 1/3 of a year, so the total is multiplied by 3.
If there were data up to May: five months is 5/12 of a year, so the total would be multiplied by 12/5 or 2.4.
If there were data up to October: ten months is 10/12 or 5/6 of a year, so the total would be multiplied by 6/5 or 1.2.
Annualisation only applies correctly to measures which accumulate over time, like Hires, Terminations or Absence Days.
Averaged measures such as Average Headcount should not be annualised, because the average for a year is not necessarily larger than the average headcount for a single month.
Start-of-period/end-of-period measures should not be annualised, because the total at the start/end of a year is the same as the total at the start/end of the first/last month.
Calculated measures may divide a cumulative measure by an averaged or "of-period" measure. For instance, Termination Rate = Terminations / Average Headcount. Such measures generally can be, and are, usefully annualised.
Note: The lowest level of granularity in the time dimension is month. Because of this it is not possible to create a year to date measure that goes to the day level as we simply don’t have that level of granularity. The WFA tool only supports to the month level.
Annualized data, Actual data, Year to date, YTD, WFA data, annualized measure , KBA , LOD-SF-WFA-WA , Workforce Anaytics , How To