Stock Analysis – Should Annualized calculation be used if only first 2 quarters financial numbers are available of a listed company?

September 14, 2020

Q & A › Stock Analysis – Should Annualized calculation be used if only first 2 quarters financial numbers are available of a listed company?
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Cherk Ming asked 3 years ago

Hi KC & Peter,
If a listed company only consists of first 2 quarters financial numbers, can I use Annualized calculation to derive following numbers for 12 months in estimation:

  1. Revenue,
  2. Net Profit,
  3. Shareholder’s Equity,
  4. Average Equity,
  5. ROE,
  6. Total Assets,
  7. Total Liabilities,
  8. Capital Employed,
  9. Profit Before Tax/Operating Profits, 
  10. ROCE,
  11. Cash & Cash Equivalents,
  12. Loans & Borrowings,
  13. Finance Cost,
  14. Dividend Payable,
  15. Growth.

Thanks.

1 Answers
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KCLau Staff answered 3 years ago

Use the TTM (Trailing-Twelve-Month) result.
Use the 2 quarters result for 2020.
Plus last two quarters result for 2019.
For example, net earnings is Q3 2019 + Q4 2019 + Q1 2020 + Q2 2020 = makes up the latest 12 months result.