This is a theoretical figure that provides you with the Sales volume that you will achieve at the end of the financial year, if nothing changed. That means that you will have to maintain your sales performance, thus meaning that environmental factors will not change dramatically, supply rate stays the same, etc.

Example:

The formula uses the year-to-date sales volume figure, multiply it by twelve (months in a year) and divide it by the number of months which the year-to-date figure represents.

Let's say your financial year runs from January, it is now May, and you want to determine the annualised sales volume figure.

You sold the following number of Units in each month:

January = 46

February = 51

March = 57

April = 63

May = 49

Year-to-Date = 266

Multiply by 12 = 3192

Divide by the number of months which the year-to-date figure represents

It is Divide by 5 = 638.4 this year

Discussion:

This number is often used in many KPI calculations. It represents merely a projection of your annual sales based on your current performance, in the current trading conditions.