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Update: To be clear I am not wanting to use "Annualized" as I believe it is being used wrong in this example. I was wonder in there was another accurate word or term to describe what is going on in the table of data. Ie. YTD. If YTD is the correct term then that will work for me but I was unsure how to describe what was going on here. Something like "Cumulative YTD" or something along those lines.

We have some data that is called "Annualized" and I do not believe that is the correct term but I cannot figure out what it should be called.

Example:

Say we get in 10,000 in contracts in the month of January and these contracts will run for say 1 or more years. At this point we are making 10,000 a month for the entire year. Now in February we get $5,000 in contracts so from February on we have 15,000 a month coming in. Now in Mar we get 8,000 in contracts so our new monthly total is 23,000. This goes on month over month and the total is all those months added up. What do we call this.

Numbers represent $1,000

Month               Jan     Feb     Mar     Apr     May     Jun     Jul     Aug     Sep     Oct     Nov     Dec
New contracts       10      5       8       7       9       12      6       3       4       4       3       2
Annualized Billable 10      15      23      30      39      51      57      60      64      68      71      73

YTD = $561,000

Our report is calling this "Annualized billable" but my understanding of what Annualized means is basically what that months billing would be for 12 months.

Would the above be considered Annualized or is there another term for this?

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  • This seems to be asking about the word for a concept and not about how to use the concept in a quantitative finance context. Therefore, I think it fits beter on English.SE. – Bob Jansen Mar 22 at 19:39
  • @user66974. No the total made for that year was $561,000. Jan made 10k, Feb made 15k, Mar made 23k and so on. The people who originally set this up called it annualized but I am not sure that word fits here. – Mike - SMT Mar 22 at 20:05
  • Annual total to date? There's a large subjective component here (I'm not aware of a set answer), but that's what I'd call it. – TaliesinMerlin Mar 22 at 20:22
  • @user66974 The 73k in Dec is how much was made in December off of all of the contracts that were active in December. So the total of 561k is each months amount added up. – Mike - SMT Mar 22 at 21:06
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    @Jim - I got a prompt to move to chat, so I deleted my previous comments. And yeah, people say whatever, but that was the point: to show that annualized revenue doesn't mean annual revenue. I think the OP is conflating those two senses of the word; I'm not sure. And I find it hard to believe that a Revenue account would be called just Annualized Billable. But who knows? Enjoyed the convo; I'll delete this later. GE. – KannE Mar 24 at 22:53
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If the title is to confer the idea that what is of interest in the report is the "month over month increasing values", then a concise title is "Monthly Cumulative Billable".

(SOED) cumulative 2 Formed by or arising from accumulation; increasing in effect or quantity by successive additions.

This "label" can even be used in place of "Total Monthly".

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  • Thank you. "Monthly Cumulative Billable" does sound much better and more accurate to me then "Annualized" that is being used already. – Mike - SMT Mar 22 at 21:15
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    Monthly cumulative billable may be confusing in the OP's context, as it may be taken to include not only what is earned in this month but the sum of the billable amounts from the preceding months and the current one, i.e. the YTD billable, which would be $48,000 in March, for example. There is nothing cumulative about the amount of $23,000 in March. One may say that this amount is a result of the cumulative effect of a number of contracts, but the amount itself is not cumulative; it's simply the amount that was earned in March. – jsw29 Mar 22 at 21:40
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    @jsw29 I agree. This is not cumulative. – Jim Mar 22 at 21:42
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    @Mike-SMT - My understanding is that these are the monthly premiums for a year(?) subscription. So that supposing a years subscription cost $12,000 then one month premium would be $1000. Then a $5000 figure shown for a given month would mean that you have 5 subscribers being billed that month giving the $5000/mo income. Adding a new $8000 in a month would mean you signed up 8 new subscribers thus making your new monthly income $13K. (Assuming no subscribers drop off). The $13K then does not represent a cumulative total, it’s just the current billable amount for that month. – Jim Mar 22 at 23:26
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    @jsw29 (10 * 12) + (5 * 11) + (8 * 10) + (7 * 9) + (9 * 8) + (12 * 7) + (6 * 6) + (3 * 5) + (4 * 4) + (4 * 3) + (3 * 2) + (2 * 1)=561. I don't believe that the number wanted is the total return in the given month n (which is given by the sum stopped at (K * (12-n+1)) but instead the total contract worth eligible for return from the given month, unless the person responsible for the table was also unsure about the meaning of those successive additions. – LPH Mar 23 at 18:21

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