In order to calculate many Key Performance Indicators, your Parts sales Volume may need to be annualised. This is simply a projection of your annual sales based on your current sales performance.
Example:
The formula is the year-to-date sales volume figure, multiplied by 12 then divided by the current month number. For example, if your current reporting period is January to April year-to-date, then the sales figure is multiplied by 12 (12 months in 1 year) and then divided by 4 (April is the 4th month in your reporting period).
A) January Sales = R40,652 B) February Sales = R85,112 C) March Sales = R60,238 D) April Sales = R45,894 E) Sales to date = R231,896 F) Multiply by 12 = R2,782,752 G) Divide by current month = 4 (April) H) Annualised Sales = R695,688
Discussion:
This is a theoretical figure that provides you with the Sales value that you will achieve at the end of the year if your sales performance where to be maintained at the current rate.