{
  "id": 47036,
  "date": "2021-08-31T10:58:39",
  "date_gmt": "2021-08-31T14:58:39",
  "guid": { "rendered": "https:\/\/finance-able.com\/?p=47036" },
  "modified": "2025-12-21T16:51:52",
  "modified_gmt": "2025-12-21T21:51:52",
  "slug": "calendarization",
  "status": "publish",
  "type": "post",
  "link": "https:\/\/finance-able.com\/calendarization\/",
  "title": {
    "rendered": "Calendarization in 2 Steps \u2013 The Ultimate Guide"
  },
  "content": {
    "rendered": "\n<p style=\"font-size:18.5px\">Master the <strong>Calendarization<\/strong> concept so you can use it on the job in <a href=\"https:\/\/finance-able.com\/investment-banking-career-path\/\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">Investment Banking<\/span><\/strong><\/a>, <a href=\"https:\/\/finance-able.com\/private-equity-vs-venture-capital\/\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">Private Equity<\/span><\/strong><\/a>, and <a href=\"https:\/\/finance-able.com\/hedge-fund-vs-mutual-fund\/\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">Investment Management<\/span><\/strong><\/a>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">In this article, you will learn:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Why Calendarization matters<\/strong>.<\/li>\n\n\n\n<li>How to <strong>Calendarize Financial data<\/strong>.<\/li>\n\n\n\n<li><strong>Real-life example: Calendarization for Forward EV\/EBITDA Multiples.<\/strong><\/li>\n<\/ul>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"yoast-reading-time__wrapper\"><span class=\"yoast-reading-time__icon\"><svg aria-hidden=\"true\" focusable=\"false\" data-icon=\"clock\" width=\"20\" height=\"20\" fill=\"none\" stroke=\"currentColor\" style=\"display:inline-block;vertical-align:-0.1em\" role=\"img\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 24 24\"><path stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"2\" d=\"M12 8v4l3 3m6-3a9 9 0 11-18 0 9 9 0 0118 0z\"><\/path><\/svg><\/span><span class=\"yoast-reading-time__spacer\" style=\"display:inline-block;width:1em\"><\/span><span class=\"yoast-reading-time__descriptive-text\">Estimated reading time: <\/span><span class=\"yoast-reading-time__reading-time\">11<\/span><span class=\"yoast-reading-time__time-unit\"> minutes<\/span><\/p>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n\n\n<div style=\"height:60px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" style=\"font-size:35px\"><strong>TL;DR<\/strong><\/h2>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Calendarization<\/strong> allows us to <strong>compare<\/strong> <strong>Financial data<\/strong> for Companies with different <strong>Fiscal Year Ends<\/strong>.<\/li>\n\n\n\n<li>We need to Calendarize because companies can choose <strong>reporting periods<\/strong> for their <strong>Fiscal Year<\/strong> that <strong>do not align<\/strong> with the <strong>Calendar Year<\/strong>.<\/li>\n\n\n\n<li>Calendarization is <strong>frequently used<\/strong> to align metrics to calculate <a href=\"https:\/\/www.divestopedia.com\/definition\/849\/forward-multiple#:~:text=The%20forward%20multiple%20refers%20to,error%20than%20the%20TTM%20multiple.\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">Forward Multiples<\/span><\/strong><\/a>.<\/li>\n<\/ul>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-columns containerwidth is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:100%\"><div class=\"kb-row-layout-wrap kb-row-layout-id47036_31f4ac-8a alignnone wp-block-kadence-rowlayout\"><div class=\"kt-row-column-wrap kt-has-1-columns kt-row-layout-equal kt-tab-layout-inherit kt-mobile-layout-row kt-row-valign-top\">\n\n<div class=\"wp-block-kadence-column kadence-column47036_bf8fbd-0e\"><div class=\"kt-inside-inner-col\">\n<h2 class=\"wp-block-heading\" id=\"h-want-to-learn-more-about-finance\" style=\"font-size:35px\"><strong>Want To Learn More About Finance?<\/strong> <\/h2>\n\n\n\n<p style=\"font-size:18px\"><strong>Ramp up faster with all of our (free) deep-dive articles in our<\/strong> <a href=\"https:\/\/finance-able.com\/analyst-starter-kit\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">Analyst Starter Kit<\/span><\/strong><\/a>:<\/p>\n\n\n<div class=\" wp-block-kadence-portfoliogrid kb-blocks-portfolio-loop-block alignnone kb-portfolio-loop47036_90f171-2b kb-portfolio-grid-layout-carousel kt-blocks-carousel \"><div class=\" kb-portfolio-grid-layout-carousel-wrap kt-post-grid-layout-carousel-wrap kt-carousel-arrowstyle-whiteondark kt-carousel-dotstyle-dark splide kb-blocks-portfolio-img-hover-zoomout kb-blocks-portfolio-content-hover-zoomin\" data-columns-xxl=\"3\" data-columns-xl=\"3\" data-columns-md=\"3\" data-columns-sm=\"2\" data-columns-xs=\"1\" data-columns-ss=\"1\" data-slider-center-mode=\"false\" data-slider-type=\"carousel\" data-slider-anim-speed=\"400\" data-slider-scroll=\"1\" data-slider-dots=\"true\" data-slider-arrows=\"true\" data-slider-hover-pause=\"false\" data-slider-auto=\"true\" data-slider-center-mode=\"false\" data-slider-speed=\"7000\" data-show-pause-button=\"false\" data-slider-gap=\"30\" data-slider-gap-tablet=\"30\" data-slider-gap-mobile=\"30\" data-slider-gap-unit=\"px\" data-item-selector=\".kb-portfolio-masonry-item\"><div class=\"kadence-splide-slider-init splide__track\"><ul><li class=\"kb-portfolio-slider-item kb-slide-item\"><div class=\"kb-blocks-portfolio-grid-item\"><div class=\"kb-blocks-portfolio-grid-item-inner-wrap kb-feat-image-align-none\"><div class=\"kadence-portfolio-image\"><div class=\"kadence-portfolio-image-intrisic kt-image-ratio-nocrop\" style=\"padding-bottom:56.25%\"><div class=\"kadence-portfolio-image-inner-intrisic\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2023\/03\/unlevered-beta-formula-lightbulb-1024x576.png\" class=\"attachment-large size-large wp-post-image\" alt=\"An image of a lightbulb with the text Unlevered Beta Formula\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2023\/03\/unlevered-beta-formula-lightbulb-1024x576.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2023\/03\/unlevered-beta-formula-lightbulb-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2023\/03\/unlevered-beta-formula-lightbulb-768x432.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2023\/03\/unlevered-beta-formula-lightbulb.png 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/div><\/div><\/div><div class=\"kb-portfolio-grid-item-inner\"><a href=\"https:\/\/finance-able.com\/unlevered-beta-formula\/\" aria-label=\"Unlevered Beta Formula &#8211; Ultimate Guide\" class=\"portfolio-hover-item-link\"><\/a><div class=\"kb-portfolio-overlay-color\"><\/div><div class=\"kb-portfolio-overlay-border\"><\/div><div class=\"kb-portfolio-content-item-inner\"><h3 class=\"entry-title kb-portfolio-loop-title\">Unlevered Beta Formula &#8211; Ultimate Guide<\/h3><\/div><\/div><\/div><\/div><\/li><li class=\"kb-portfolio-slider-item kb-slide-item\"><div class=\"kb-blocks-portfolio-grid-item\"><div class=\"kb-blocks-portfolio-grid-item-inner-wrap kb-feat-image-align-none\"><div class=\"kadence-portfolio-image\"><div class=\"kadence-portfolio-image-intrisic kt-image-ratio-nocrop\" style=\"padding-bottom:56.25%\"><div class=\"kadence-portfolio-image-inner-intrisic\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2023\/01\/lightbulb-purchase-price-allocation-1024x576.png\" class=\"attachment-large size-large wp-post-image\" alt=\"A lightbulb and the words Purchase Price Allocation\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2023\/01\/lightbulb-purchase-price-allocation-1024x576.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2023\/01\/lightbulb-purchase-price-allocation-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2023\/01\/lightbulb-purchase-price-allocation-768x432.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2023\/01\/lightbulb-purchase-price-allocation.png 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/div><\/div><\/div><div class=\"kb-portfolio-grid-item-inner\"><a href=\"https:\/\/finance-able.com\/purchase-price-allocation\/\" aria-label=\"Purchase Price Allocation in 4 Steps &#8211; The Ultimate Guide\" class=\"portfolio-hover-item-link\"><\/a><div class=\"kb-portfolio-overlay-color\"><\/div><div class=\"kb-portfolio-overlay-border\"><\/div><div class=\"kb-portfolio-content-item-inner\"><h3 class=\"entry-title kb-portfolio-loop-title\">Purchase Price Allocation in 4 Steps &#8211; The Ultimate Guide<\/h3><\/div><\/div><\/div><\/div><\/li><li class=\"kb-portfolio-slider-item kb-slide-item\"><div class=\"kb-blocks-portfolio-grid-item\"><div class=\"kb-blocks-portfolio-grid-item-inner-wrap kb-feat-image-align-none\"><div class=\"kadence-portfolio-image\"><div class=\"kadence-portfolio-image-intrisic kt-image-ratio-nocrop\" style=\"padding-bottom:45.138888888889%\"><div class=\"kadence-portfolio-image-inner-intrisic\"><img loading=\"lazy\" decoding=\"async\" width=\"720\" height=\"325\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/06\/0-Walk-Me-Through-a-DCF-Definitive-Guide-Cover-1.png\" class=\"attachment-large size-large wp-post-image\" alt=\": A stick figure answering an interview question with the title text &#039;Walk Me Through an LBO&#039; below\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/06\/0-Walk-Me-Through-a-DCF-Definitive-Guide-Cover-1.png 720w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/06\/0-Walk-Me-Through-a-DCF-Definitive-Guide-Cover-1-300x135.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/06\/0-Walk-Me-Through-a-DCF-Definitive-Guide-Cover-1-400x181.png 400w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/06\/0-Walk-Me-Through-a-DCF-Definitive-Guide-Cover-1-624x282.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/06\/0-Walk-Me-Through-a-DCF-Definitive-Guide-Cover-1-50x23.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/06\/0-Walk-Me-Through-a-DCF-Definitive-Guide-Cover-1-100x45.png 100w\" sizes=\"auto, (max-width: 720px) 100vw, 720px\" \/><\/div><\/div><\/div><div class=\"kb-portfolio-grid-item-inner\"><a href=\"https:\/\/finance-able.com\/walk-me-through-a-dcf\/\" aria-label=\"Walk Me Through a DCF in 5 Steps &#8211; The Ultimate Guide\" class=\"portfolio-hover-item-link\"><\/a><div class=\"kb-portfolio-overlay-color\"><\/div><div class=\"kb-portfolio-overlay-border\"><\/div><div class=\"kb-portfolio-content-item-inner\"><h3 class=\"entry-title kb-portfolio-loop-title\">Walk Me Through a DCF in 5 Steps &#8211; The Ultimate Guide<\/h3><\/div><\/div><\/div><\/div><\/li><\/ul><\/div><div class=\"clearfix\" style=\"clear:both\"><\/div><\/div><\/div><\/div><\/div>\n\n<\/div><\/div><\/div>\n<\/div>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" style=\"font-size:35px\"><strong>Why Does Calendarization Matter?<\/strong><\/h2>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/a-stick-figure-in-meeting-confused-about-calendarization-1024x576.png\" alt=\"An image of a stick figure sitting at a desk confused about Calendarization and its applications\" class=\"wp-image-47019\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/a-stick-figure-in-meeting-confused-about-calendarization-1024x576.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/a-stick-figure-in-meeting-confused-about-calendarization-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/a-stick-figure-in-meeting-confused-about-calendarization-768x432.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/a-stick-figure-in-meeting-confused-about-calendarization-400x225.png 400w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/a-stick-figure-in-meeting-confused-about-calendarization-624x351.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/a-stick-figure-in-meeting-confused-about-calendarization-50x28.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/a-stick-figure-in-meeting-confused-about-calendarization-100x56.png 100w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/a-stick-figure-in-meeting-confused-about-calendarization.png 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div>\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p style=\"font-size:18.5px\">You\u2019re off to a great start with your new Finance job.<\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>And then your VP stops by and says, &#8216;<em>Can you put together the forward multiples for the target company\u2026and make sure they\u2019re Calendarized?<\/em>&#8216;<\/strong><\/p>\n\n\n\n<p style=\"font-size:18.5px\">You give a <strong>confident nod<\/strong>\u2026and then scramble to figure out the <strong>meaning of Calendarization<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Don\u2019t sweat it! We\u2019ve got you covered!<\/strong><\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Calendarization<\/strong> is a <strong>critical concept<\/strong> to master if you are <strong>aiming for (or working in) Finance<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">To master this concept, you will <strong>need to understand:<\/strong><\/p>\n\n\n\n<ol style=\"list-style-type:1\" class=\"wp-block-list\">\n<li>The underlying <strong>meaning of &#8216;Calendarization&#8217;<\/strong> (<a href=\"#The-Meaning-of-Calendarization\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">Go to section<\/span><\/strong><\/a>).<\/li>\n\n\n\n<li>The <strong>Calendarization Calculation<\/strong> (<strong><a href=\"#How-to-Calculate-Calendarization-in-2-Steps\"><span class=\"has-inline-color has-vivid-cyan-blue-color\">Go to section<\/span><\/a><\/strong>).<\/li>\n\n\n\n<li>Common uses of <strong>Calendarization on the Job <\/strong>(<strong><a href=\"#On-The-Job-Example:-Calculating-Forward-Multiples\"><span class=\"has-inline-color has-vivid-cyan-blue-color\">Go to section<\/span><\/a><\/strong>)<strong>.<\/strong><\/li>\n<\/ol>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p style=\"font-size:18.5px\">In this article, we will make the <strong>definition&nbsp;of \u2018Calendarized\u2019 <\/strong>very clear. Then, with a quick read here, you will be able to <strong>answer the common questions on this topic:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>What is Calendarization?<\/em><\/li>\n\n\n\n<li><em>How do you Calendarize Financial data?<\/em><\/li>\n\n\n\n<li><em>How do we align companies with different Fiscal Years?<\/em><\/li>\n<\/ul>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Let\u2019s start with how do we define &#8216;Calendarization?&#8217;<\/strong><\/p>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"The-Meaning-of-Calendarization\" style=\"font-size:26px\"><strong>The Meaning of Calendarization<\/strong><\/h3>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p style=\"font-size:18.5px\">In short, a <strong><em>Calendarization<\/em><\/strong> is a process of <strong>aligning two Companies<\/strong>&#8216; <strong>Fiscal Years (FY)<\/strong> to <strong>create a<\/strong> <strong>consistent year-end<\/strong> for both companies.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/stick-figure-confused-comparing-different-fiscal-year-ends-1-1024x576.png\" alt=\"A stick figure confused about how to compare two companies with different fiscal year ends.\" class=\"wp-image-47176\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/stick-figure-confused-comparing-different-fiscal-year-ends-1-1024x576.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/stick-figure-confused-comparing-different-fiscal-year-ends-1-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/stick-figure-confused-comparing-different-fiscal-year-ends-1-768x432.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/stick-figure-confused-comparing-different-fiscal-year-ends-1-400x225.png 400w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/stick-figure-confused-comparing-different-fiscal-year-ends-1-624x351.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/stick-figure-confused-comparing-different-fiscal-year-ends-1-50x28.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/stick-figure-confused-comparing-different-fiscal-year-ends-1-100x56.png 100w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/stick-figure-confused-comparing-different-fiscal-year-ends-1.png 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div>\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Analysts use Calendarization <\/strong>because the <strong>Company Reporting Calendar<\/strong> for many businesses <strong>does not align<\/strong> with the standard <strong>Calendar Year<\/strong>.<\/p>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/calendar-year-vs-fiscal-year-1024x576.png\" alt=\"An image contrasting the definitions of Calendar Year vs Fiscal Year\" class=\"wp-image-47024\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/calendar-year-vs-fiscal-year-1024x576.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/calendar-year-vs-fiscal-year-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/calendar-year-vs-fiscal-year-768x432.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/calendar-year-vs-fiscal-year-400x225.png 400w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/calendar-year-vs-fiscal-year-624x351.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/calendar-year-vs-fiscal-year-50x28.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/calendar-year-vs-fiscal-year-100x56.png 100w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/calendar-year-vs-fiscal-year.png 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div>\n\n\n<p style=\"font-size:18.5px\">A <strong>fair question<\/strong> to ask at this point is, \u2018<strong>Why don\u2019t all companies just report based on a Calendar Year?<\/strong>\u2019<\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Let\u2019s jump ahead and see.<\/strong><\/p>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" style=\"font-size:35px\"><strong>Why don\u2019t Fiscal and Calendar Years align?<\/strong><\/h2>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p style=\"font-size:18.5px\">As we said above, <strong>many companies<\/strong> choose to <strong>report<\/strong> their numbers based on <strong>Fiscal Years (abbreviated as \u2018FY\u2019 in Finance) that do not align with the Calendar Year (abbreviated as \u2018CY\u2019 in Finance)<\/strong>.<\/p>\n\n\n\n<div style=\"height:15px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-medium-font-size\"><strong><em>But, how do we explain Fiscal Year ends that don\u2019t align with the Calendar Year?<\/em><\/strong><\/p>\n\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div style=\"height:15px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/Calendarization-v2-1024x576.png\" alt=\"A stick figure  confused about why companies don't all report on a Calendar Year basis\" class=\"wp-image-47166\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/Calendarization-v2-1024x576.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/Calendarization-v2-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/Calendarization-v2-768x432.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/Calendarization-v2-400x225.png 400w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/Calendarization-v2-624x351.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/Calendarization-v2-50x28.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/Calendarization-v2-100x56.png 100w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/Calendarization-v2.png 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p style=\"font-size:18.5px\">The short story is that Companies typically <strong>choose a Non-Calendar Year-End to align<\/strong> with the <strong>flow of their business<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">In short, if there are recurring, <strong>significant intra-year spikes<\/strong> in business within a year (i.e. <strong><a href=\"https:\/\/en.wikipedia.org\/wiki\/Seasonality\" target=\"_blank\" rel=\"noreferrer noopener\"><span class=\"has-inline-color has-vivid-cyan-blue-color\">Seasonality<\/span><\/a><\/strong>), companies often aim to <strong>report after the largest period ends<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">It is also <strong>operationally difficult<\/strong> <strong>to<\/strong> <strong>compile<\/strong> <strong>Financial numbers<\/strong> amid the <strong>craziness<\/strong> that comes with <strong>peak Business periods<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">Below are a <strong>few examples<\/strong> of industries and companies with <strong>non-calendar Fiscal Year Ends (often abbreviated as FYE in Finance)<\/strong>:<\/p>\n\n\n\n<div style=\"height:15px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><u>Industry-Specific Examples<\/u><\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Retail (Fiscal Year End 2\/1)<\/strong> \u2013 typically report after the Christmas holidays.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><u>Company-Specific Examples<\/u><\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Apple (Fiscal Year End 9\/30) <\/strong>\u2013 reports after the big product release each September.<\/li>\n\n\n\n<li><strong>H&amp;R Block (Fiscal Year End 4\/30)<\/strong> \u2013 reports following the end of Tax Season each year.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" style=\"font-size:35px\"><strong>A Visual Overview of Calendarization<\/strong><\/h2>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p style=\"font-size:18.5px\">To begin our discussion on Calendarization, let\u2019s <strong>revisit the example<\/strong> from earlier in the article.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">In that example, we had <strong>Company 1 with a Calendar Year-End<\/strong> (December 31<sup>st<\/sup>) and <strong>Company 2 with a Fiscal Year Ending on June 30<sup>th<\/sup><\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">As you can see below, <strong>Company 2 has 50% overlap in each Fiscal Year with Company 1<\/strong>.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1920\" height=\"1080\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/timelines-showing-fifty-percent-overlap-2.gif\" alt=\"A timeline showing that we need half of each year to align year end vs year end.\" class=\"wp-image-47180\"\/><\/figure>\n<\/div>\n\n\n<p style=\"font-size:18.5px\"><strong>To Calendarize Revenue<\/strong> for Company 2, we would <strong>multiply the overlapping percentage<\/strong> of the year (50%) by <strong>FY 2020 Revenue<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">We would <strong>then multiply<\/strong> the <strong>overlapping percentage<\/strong> of the year (again 50%) by <strong>FY 2021 Revenue<\/strong>.<\/p>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/need-half-of-each-fiscal-year-to-align-year-end-vs-year-end-1024x576.png\" alt=\"A timeline showing that we need half of each year to create a calendarized 2020 Revenue for Company 2.\" class=\"wp-image-47027\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/need-half-of-each-fiscal-year-to-align-year-end-vs-year-end-1024x576.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/need-half-of-each-fiscal-year-to-align-year-end-vs-year-end-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/need-half-of-each-fiscal-year-to-align-year-end-vs-year-end-768x432.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/need-half-of-each-fiscal-year-to-align-year-end-vs-year-end-400x225.png 400w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/need-half-of-each-fiscal-year-to-align-year-end-vs-year-end-624x351.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/need-half-of-each-fiscal-year-to-align-year-end-vs-year-end-50x28.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/need-half-of-each-fiscal-year-to-align-year-end-vs-year-end-100x56.png 100w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/need-half-of-each-fiscal-year-to-align-year-end-vs-year-end.png 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div>\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p style=\"font-size:18.5px\">The net result is a <strong>calendarized Revenue<\/strong> <strong>for the 12 months ended 12\/31\/2020<\/strong>.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>In the next section, we boil the Calendarization process into a simple, 2-Step process.<\/strong><\/p>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"How-to-Calculate-Calendarization-in-2-Steps\" style=\"font-size:35px\"><strong>How to Calendarize in 2 Steps<\/strong><\/h2>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p style=\"font-size:18.5px\">The <strong>Calendarization Formula<\/strong> requires just <strong>two steps<\/strong>.<\/p>\n\n\n<!-- This site is converting visitors into subscribers and customers with OptinMonster - https:\/\/optinmonster.com :: Campaign Title: Calendarization in 2 Steps - Obfuscation -->\n<div id=\"om-bzfyj6qupbkinqeiueec-holder\"><\/div>\n<script>(function(d,u,ac){var s=d.createElement('script');s.type='text\/javascript';s.src='https:\/\/a.omappapi.com\/app\/js\/api.min.js';s.async=true;s.dataset.user=u;s.dataset.campaign=ac;d.getElementsByTagName('head')[0].appendChild(s);})(document,130718,'bzfyj6qupbkinqeiueec');<\/script>\n<!-- \/ OptinMonster -->\n\n\n\n<p style=\"font-size:18.5px\">We will <strong>Calendarize Revenue<\/strong> in this example. <\/p>\n\n\n\n<p style=\"font-size:18.5px\">But, note that you <strong>can use the process above to &#8216;Calendarize&#8217; any item<\/strong> on an <strong>Income Statement<\/strong> or <strong>Cash Flow Statement<\/strong>.<\/p>\n\n\n\n<div style=\"height:15px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/two-steps-to-calculate-calendarization-1-1024x576.png\" alt=\"An image showing the two steps of the Calendarization Calculation \" class=\"wp-image-47177\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/two-steps-to-calculate-calendarization-1-1024x576.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/two-steps-to-calculate-calendarization-1-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/two-steps-to-calculate-calendarization-1-768x432.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/two-steps-to-calculate-calendarization-1-400x225.png 400w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/two-steps-to-calculate-calendarization-1-624x351.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/two-steps-to-calculate-calendarization-1-50x28.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/two-steps-to-calculate-calendarization-1-100x56.png 100w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/two-steps-to-calculate-calendarization-1.png 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div>\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" style=\"font-size:26px\"><strong>How to Calendarize in 2 Steps<\/strong><\/h3>\n\n\n\n<div class=\"schema-how-to wp-block-yoast-how-to-block\"><p class=\"schema-how-to-description\"><\/p> <ol class=\"schema-how-to-steps\"><li class=\"schema-how-to-step\" id=\"how-to-step-1630391071265\"><strong class=\"schema-how-to-step-name\"><em> <em><strong>Find <\/strong><\/em><strong>Percentage Overlap from Prior FY and Multiply by Prior FY Revenue<\/strong><\/em><\/strong> <p class=\"schema-how-to-step-text\"><br\/>Find the number of months for which the prior Fiscal Year overlaps with the year-end to which you\u2019re aligning. Next, divide the number of months by 12.<br\/><br\/>Next, find Revenue for the Prior Fiscal Year the Company. You can find this in the Company\u2019s public financial filings (<a href=\"https:\/\/www.sec.gov\/edgar\/searchedgar\/companysearch.html\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">SEC Edgar Search<\/span><\/strong><\/a>).<br\/><br\/>If you are doing this exercise for your Company or a Privately held Client, you will likely need to ask the Accounting department or the Client respectively for the numbers.<br\/><br\/>Finally, divide the number of months by 12. Then multiply the percentage overlap by the prior Fiscal Year Revenue. <\/p> <\/li><li class=\"schema-how-to-step\" id=\"how-to-step-1630391165762\"><strong class=\"schema-how-to-step-name\"><em><em><strong>Find <\/strong><\/em><strong>Percentage Overlap from Current FY and Multiply by Current FY Revenue<\/strong><\/em> <\/strong> <p class=\"schema-how-to-step-text\"><br\/>Find the number of months for which the current Fiscal Year overlaps with the year-end to which you\u2019re aligning.<br\/><br\/>Next, find Revenue for the current Fiscal Year for a Company. You&#8217;ll use the same data sources for the numbers as in Step 1.<br\/><br\/>Finally, divide the number of months by 12. Then multiply the percentage overlap by the current Fiscal Year Revenue.<\/p> <\/li><\/ol><\/div>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p style=\"font-size:18.5px\">Below we walk through this process with <strong>two real companies<\/strong>: <a href=\"https:\/\/www.nike.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">Nike<\/span><\/strong><\/a><strong> and <\/strong><a href=\"https:\/\/www.skechers.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">Skechers<\/span><\/strong><\/a>.<\/p>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" style=\"font-size:26px\"><strong>A Simple Example with Nike and Skechers<\/strong><\/h3>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p style=\"font-size:18.5px\">Let\u2019s <strong>imagine<\/strong> that you need to <strong>compare Revenue for Nike and Skechers<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Skechers\u2019 Fiscal Year ends<\/strong> on <strong>December 31<sup>st<\/sup> <\/strong>of each year. On the other hand, <strong>Nike\u2019s Fiscal Year<\/strong> ends on <strong>May 31<sup>st<\/sup><\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">So we will need to <strong>Calendarize Nike\u2019s<\/strong> numbers to <strong>make them comparable<\/strong> to those of <strong>Skechers<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">We will begin by <strong>finding the number of months<\/strong> for which <strong>Nike\u2019s Fiscal Year overlaps with Skechers<\/strong>.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/nike-vs-skechers-year-ends-CY20-1-1024x576.png\" alt=\"An image showing the fiscal year ends for Nike and Skechers and the number of overlapping months for calendar vs fiscal year end for CY20\" class=\"wp-image-47186\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/nike-vs-skechers-year-ends-CY20-1-1024x576.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/nike-vs-skechers-year-ends-CY20-1-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/nike-vs-skechers-year-ends-CY20-1-768x432.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/nike-vs-skechers-year-ends-CY20-1-400x225.png 400w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/nike-vs-skechers-year-ends-CY20-1-624x351.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/nike-vs-skechers-year-ends-CY20-1-50x28.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/nike-vs-skechers-year-ends-CY20-1-100x56.png 100w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/nike-vs-skechers-year-ends-CY20-1.png 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div>\n\n\n<p style=\"font-size:18.5px\">We would <strong>then divide the number of overlapping months by 12<\/strong> for the current and prior fiscal years <strong>to calculate the percentage of each year<\/strong> for which Nike overlaps with Skechers.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">Finally, we would <strong>multiply the percentage overlap<\/strong> by the <strong>prior and current Fiscal Year<\/strong> <strong>Revenue<\/strong> to arrive at Nike&#8217;s <strong>Calendarized Revenue for 12\/31\/2020<\/strong>.<\/p>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/calculate-nike-calendarized-revenue-2-1024x576.png\" alt=\"An image showing how to calculate 2020 calendarized revenue for Nike\" class=\"wp-image-47183\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/calculate-nike-calendarized-revenue-2-1024x576.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/calculate-nike-calendarized-revenue-2-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/calculate-nike-calendarized-revenue-2-768x432.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/calculate-nike-calendarized-revenue-2-400x225.png 400w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/calculate-nike-calendarized-revenue-2-624x351.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/calculate-nike-calendarized-revenue-2-50x28.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/calculate-nike-calendarized-revenue-2-100x56.png 100w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/calculate-nike-calendarized-revenue-2.png 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p style=\"font-size:18.5px\">Now let\u2019s look at a common <strong>on-the-job application<\/strong> of <strong>Calendarization<\/strong>.<\/p>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"On-The-Job-Example:-Calculating-Forward-Multiples\" style=\"font-size:35px\"><strong>On The Job Example: Calculating Forward Multiples<\/strong><\/h2>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p style=\"font-size:18.5px\"><a href=\"https:\/\/finance-able.com\/investment-banking-career-path\/\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">Investment Bankers<\/span><\/strong><\/a><strong>, <\/strong><a href=\"https:\/\/finance-able.com\/private-equity-vs-venture-capital\/\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">Private Equity<\/span><\/strong><\/a><strong>, <\/strong><a href=\"https:\/\/finance-able.com\/hedge-fund-vs-mutual-fund\/\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">Hedge Fund<\/span><\/strong><\/a> analysts often <strong>use Calendarization<\/strong> to <strong>align Analysts&#8217; estimated numbers<\/strong> for companies with different year-ends<strong>.<\/strong><\/p>\n\n\n\n<p style=\"font-size:18.5px\">For example, let\u2019s <strong>imagine<\/strong> that we would like to <strong>calculate Enterprise Value \/ 2021 EBITDA for<\/strong> both <strong>Nike and Skechers<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:19px\">We can quickly <strong>pull <\/strong><a href=\"https:\/\/finance-able.com\/enterprise-value-vs-equity-value\/\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">Enterprise Value<\/span><\/strong><\/a> from <a href=\"https:\/\/www.koyfin.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">Koyfin<\/span><\/strong><\/a><strong>. <\/strong>Both are listed below:<\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong><u>Enterprise Value (8\/30\/21)<\/u><\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Nike: $265.4B<\/li>\n\n\n\n<li>Skechers: $8.6B<\/li>\n<\/ul>\n\n\n\n<p style=\"font-size:18.5px\">Source: <a href=\"https:\/\/www.koyfin.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><span class=\"has-inline-color has-vivid-cyan-blue-color\"><strong>Koyfin<\/strong><\/span><\/a><\/p>\n\n\n\n<p style=\"font-size:18.5px\">Now we <strong>need Calendar Year <\/strong><a href=\"https:\/\/www.fool.com\/investing\/how-to-invest\/stocks\/ebitda\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">EBITDA<\/span><\/strong><\/a> for both companies.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/nike-vs-skechers-year-ends-CY21-1024x576.png\" alt=\"An image showing the fiscal year ends for Nike and Skechers and the number of overlapping months for calendar vs fiscal year end for CY21\" class=\"wp-image-47188\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/nike-vs-skechers-year-ends-CY21-1024x576.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/nike-vs-skechers-year-ends-CY21-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/nike-vs-skechers-year-ends-CY21-768x432.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/nike-vs-skechers-year-ends-CY21-400x225.png 400w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/nike-vs-skechers-year-ends-CY21-624x351.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/nike-vs-skechers-year-ends-CY21-50x28.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/nike-vs-skechers-year-ends-CY21-100x56.png 100w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/nike-vs-skechers-year-ends-CY21.png 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div>\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p style=\"font-size:18.5px\">We <strong>directly pull<\/strong> the <strong>FY 2021<\/strong> <strong>estimate for Skechers<\/strong> <strong>because the Company<\/strong> reports on a <strong>Calendar Year basis<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:19px\">In <strong>Fiscal Year 2021 (FYE 12\/31\/21)<\/strong>, Analysts estimate that <strong>Skechers<\/strong> <strong>will generate $0.8 billion in EBITDA<\/strong>. <\/p>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"386\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/fiscal-2021-ebitda-for-skechers-1024x386.png\" alt=\"An image from Koyfin showing 2021 estimated EBITDA for Skechers\" class=\"wp-image-47259\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/fiscal-2021-ebitda-for-skechers-1024x386.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/fiscal-2021-ebitda-for-skechers-300x113.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/fiscal-2021-ebitda-for-skechers-768x289.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/fiscal-2021-ebitda-for-skechers-400x151.png 400w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/fiscal-2021-ebitda-for-skechers-624x235.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/fiscal-2021-ebitda-for-skechers-50x19.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/fiscal-2021-ebitda-for-skechers-100x38.png 100w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/fiscal-2021-ebitda-for-skechers.png 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div>\n\n\n<p>Source: <strong><a href=\"https:\/\/www.koyfin.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><span class=\"has-inline-color has-vivid-cyan-blue-color\">Koyfin<\/span><\/a><\/strong><\/p>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p style=\"font-size:18.5px\">For <strong>Nike<\/strong>, however, we <strong>must Calendarize<\/strong> <strong>FY 2021 EBITDA ($7.7 billion) and estimated FY 2022 EBITDA ($9.2 billion)<\/strong> to create <strong>a Calendar Year Ended 2021 estimated EBITDA<\/strong>.<\/p>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"445\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/fiscal-2021-ebitda-for-nike-1-1024x445.png\" alt=\"\" class=\"wp-image-47262\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/fiscal-2021-ebitda-for-nike-1-1024x445.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/fiscal-2021-ebitda-for-nike-1-300x130.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/fiscal-2021-ebitda-for-nike-1-768x334.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/fiscal-2021-ebitda-for-nike-1-400x174.png 400w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/fiscal-2021-ebitda-for-nike-1-624x271.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/fiscal-2021-ebitda-for-nike-1-50x22.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/fiscal-2021-ebitda-for-nike-1-100x43.png 100w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/fiscal-2021-ebitda-for-nike-1.png 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div>\n\n\n<p> Source: <strong><a href=\"https:\/\/www.koyfin.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><span class=\"has-inline-color has-vivid-cyan-blue-color\">Koyfin<\/span><\/a><\/strong> <\/p>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p><strong>To Calendarize Nike&#8217;s EBITDA<\/strong>, we&#8217;ll <strong>multiply<\/strong> the <strong>percentage overlap<\/strong> <strong>from FY21<\/strong> (5 months \/ 12 months) by the <strong>FY21 EBITDA of $7.7 billion<\/strong>.<\/p>\n\n\n\n<p>Then we&#8217;ll <strong>multiply <\/strong>the <strong>percentage overlap from FY22<\/strong> (7 months \/ 12 months) by the <strong>FY22 EBITDA of $9.2 billion<\/strong>. <\/p>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/calculate-nike-calendarized-EBITDA-2-1024x576.png\" alt=\"An image showing how to calculate 2021 calendarized EBITDA for Nike\" class=\"wp-image-47297\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/calculate-nike-calendarized-EBITDA-2-1024x576.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/calculate-nike-calendarized-EBITDA-2-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/calculate-nike-calendarized-EBITDA-2-768x432.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/calculate-nike-calendarized-EBITDA-2-400x225.png 400w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/calculate-nike-calendarized-EBITDA-2-624x351.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/calculate-nike-calendarized-EBITDA-2-50x28.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/calculate-nike-calendarized-EBITDA-2-100x56.png 100w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/calculate-nike-calendarized-EBITDA-2.png 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p> Source: <a href=\"https:\/\/www.sec.gov\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">SEC Filings<\/span><\/strong><\/a> <\/p>\n\n\n\n<div style=\"height:15px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p>As you can see from the image above, <strong>Nike&#8217;s calendarized EBITDA is $8.6B for CY 2021<\/strong>.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p style=\"font-size:18.5px\">Now we can <strong>calculate the forward Enterprise Value (EV\/EBITDA) multiples<\/strong> for both companies:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Nike EV\/CY 2021 EBITDA: 31x<\/strong>\n<ul class=\"wp-block-list\">\n<li><em>Calculation: [EV $265B \/ $8.6B \u201921 EBITDA]<\/em><\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Skechers EV\/CY 2021 EBITDA:&nbsp; 11x<\/strong>\n<ul class=\"wp-block-list\">\n<li><em>Calculation: [EV $8.6B \/ $0.8B \u201921 EBITDA]<\/em><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<div style=\"height:15px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p style=\"font-size:18.5px\">There are a variety of use cases for these calendarized multiples:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Exit Multiple <\/strong>for a <a href=\"https:\/\/finance-able.com\/walk-me-through-a-dcf\/\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">Discounted Cash Flow (DCF)<\/span><\/strong><\/a> analysis.<\/li>\n\n\n\n<li><strong>Entry or Exit Multiple<\/strong> for a <a href=\"https:\/\/finance-able.com\/walk-me-through-an-lbo\/\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">Leveraged Buyout (LB0)<\/span><\/strong><\/a> analysis.<\/li>\n\n\n\n<li>Calculating <strong>Pro Forma Multiples<\/strong> for a Merger Model.<\/li>\n<\/ul>\n\n\n\n<div style=\"height:15px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p style=\"font-size:18.5px\">As for why the multiples are so different, <strong>that\u2019s a conversation for another day!<\/strong><\/p>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" style=\"font-size:35px\"><strong>Wrap-Up: Calendarization<\/strong><\/h2>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/stick-figure-understanding-calendarization-concept-1024x576.png\" alt=\"An image showing a stick figure at a desk understanding the calendarization concept.\" class=\"wp-image-47032\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/stick-figure-understanding-calendarization-concept-1024x576.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/stick-figure-understanding-calendarization-concept-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/stick-figure-understanding-calendarization-concept-768x432.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/stick-figure-understanding-calendarization-concept-400x225.png 400w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/stick-figure-understanding-calendarization-concept-624x351.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/stick-figure-understanding-calendarization-concept-50x28.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/stick-figure-understanding-calendarization-concept-100x56.png 100w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/08\/stick-figure-understanding-calendarization-concept.png 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div>\n\n\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Hopefully<\/strong>, you now have a <strong>much better understanding of<\/strong> <strong>Calendarization<\/strong>. And also understand the <strong>underlying idea<\/strong> <strong>behind Calendarization<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Calendarization<\/strong> is <strong>important<\/strong> because it helps us to <strong>compare companies with different Fiscal Year Ends<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Let us know if you have any questions in the comments below. We&#8217;d love to hear from you!<\/strong><\/p>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" style=\"font-size:35px\"><strong>About the Author<\/strong><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignleft size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"500\" height=\"500\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2020\/12\/MK-Photo.jpg\" alt=\"Picture of Mike Kimpel, Founder of Finance|able\" class=\"wp-image-26350\" style=\"width:266px;height:266px\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2020\/12\/MK-Photo.jpg 500w, https:\/\/finance-able.com\/wp-content\/uploads\/2020\/12\/MK-Photo-300x300.jpg 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2020\/12\/MK-Photo-100x100.jpg 100w, https:\/\/finance-able.com\/wp-content\/uploads\/2020\/12\/MK-Photo-150x150.jpg 150w, https:\/\/finance-able.com\/wp-content\/uploads\/2020\/12\/MK-Photo-50x50.jpg 50w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/figure>\n<\/div>\n\n\n<p class=\"has-normal-font-size\"><a href=\"https:\/\/finance-able.com\/about\/\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">Mike Kimpel<\/span><\/strong><\/a> is the <strong>Founder and CEO<\/strong> of <strong>Finance|able<\/strong>, a next-generation Finance Career Training platform. Mike has worked in Investment Banking, Private Equity, Hedge Fund, and Mutual Fund roles during his career.<\/p>\n\n\n\n<p class=\"has-normal-font-size\">He is an <strong>Adjunct Professor<\/strong> in <strong>Columbia Business School&#8217;s <a href=\"https:\/\/www8.gsb.columbia.edu\/valueinvesting\/coursesfaculty\/valueinvestingprogram\" target=\"_blank\" rel=\"noreferrer noopener\"><span class=\"has-inline-color has-vivid-cyan-blue-color\">Value Investing Program<\/span><\/a><\/strong> and leads the Finance track at <a href=\"https:\/\/www.accessdistributed.org\/\" target=\"_blank\" rel=\"noreferrer noopener\"><span class=\"has-inline-color has-vivid-cyan-blue-color\"><strong>Access Distributed<\/strong><\/span><\/a>, a non-profit that creates access to top-tier Finance jobs for students at non-target schools from underrepresented backgrounds.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<div style=\"height:60px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" style=\"font-size:35px\"><strong>Frequently Asked Questions<\/strong><\/h2>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1630391240717\"><strong class=\"schema-faq-question\"><strong><em>What does Calendarization mean?<\/em><\/strong><\/strong> <p class=\"schema-faq-answer\">Calendarization is the process of aligning financial metrics for companies with different fiscal year-ends to make their numbers consistent. Analysts use Calendarization in various cases ranging from aligning estimated data to calculating pro forma numbers for an M&amp;A analysis.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1630391283491\"><strong class=\"schema-faq-question\"><strong><em>Why do we calendarize financials?<\/em><\/strong><\/strong> <p class=\"schema-faq-answer\">We calendarize company financials because companies do not always report based on the same Fiscal Year End. Calendarization allows us to compare companies based on the same year-end.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1630391376097\"><strong class=\"schema-faq-question\"><strong><em>What is a Fiscal Year?<\/em><\/strong><\/strong> <p class=\"schema-faq-answer\">A fiscal year is the reporting period chosen by a business reflecting 12 months of performance. The Fiscal Year may or may not align with the calendar year.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1630391417972\"><strong class=\"schema-faq-question\"><strong><em>How are fiscal years determined?<\/em><\/strong><\/strong> <p class=\"schema-faq-answer\">Companies often choose non-calendar year periods for their businesses when they have significant intra-year spikes in their business.<br\/>\u00a0<br\/>For example, retailers generate a significant portion of their Revenue during the holiday season. As a result, they often set their Fiscal Year End to the end of January.<br\/>\u00a0<br\/>This gives them time to prepare their numbers after the craziness of the Holidays season has subsided.<\/p> <\/div> <\/div>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-related-links\" style=\"font-size:35px\">Related Links<\/h2>\n\n\n\n<ul class=\"wp-block-yoast-seo-related-links yoast-seo-related-links\">\n<li><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\"><strong><a href=\"https:\/\/finance-able.com\/walk-me-through-an-lbo\/\">Walk Me Through and LBO<\/a><\/strong><\/mark><\/li>\n\n\n\n<li><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\"><a href=\"https:\/\/finance-able.com\/ltm-revenue\/\">LTM Revenue (and EBITDA)<\/a><\/mark><\/strong><\/li>\n\n\n\n<li><a href=\"https:\/\/finance-able.com\/investment-banking-career-path\/\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-cyan-blue-color\"><strong>Investment Banking Career Path<\/strong><\/mark><\/a><\/li>\n<\/ul>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<div class=\"yoast-breadcrumbs\"><span><span><a href=\"https:\/\/finance-able.com\/\">Home<\/a><\/span> \u00bb <span class=\"breadcrumb_last\" aria-current=\"page\">Calendarization in 2 Steps \u2013 The Ultimate Guide<\/span><\/span><\/div><style class=\"advgb-styles-renderer\">.kb-table-of-content-nav.kb-table-of-content-id47036_c690af-59 .kb-table-of-content-wrap{margin-top:20px;margin-right:0px;margin-bottom:0px;margin-left:0px;padding-top:var(--global-kb-spacing-sm, 1.5rem);padding-right:var(--global-kb-spacing-sm, 1.5rem);padding-bottom:var(--global-kb-spacing-sm, 1.5rem);padding-left:var(--global-kb-spacing-sm, 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