Year To Date, or YTD, is a simple means of calculating the value or profitability of an asset throughout a single given year. To calculate Year To Date margins of profitability, subtract the value calculated for the first day of the ‘FY’ or Fiscal Year, January 1st, from its current value. This will provide you with the asset’s profit or loss margin.
By using a multitude of Year To Date results one can create insightful cross-comparisons between those years. This is called a Year To Year or YTY. YTD and YTY are useful barometers in assessing the sustainability and profitability of a cryptocurrency asset.
Year to Month Forumula
To gather more narrowly focused data sets a Yearto Month formula is used. This formula is in essence the same a the YTD formula, except instead of using the start of the fiscal year, it uses the start of the month with the current date. This type of calculation is generally used to show the asset’s returns or losses thus far in the month or to give a very accurate insight into the difference between months.
Year To Date is generally used to create insight into the performance of a crypto asset and while useful they are generally considered to be quite limited in their scope. And this is proportionately true for Year To Month calculations. This is due to the limited time frame within their calculations. A slow month or year may not be indicative of the strength of an asset. Therefore, three to five-year portfolio comparisons of YTD’s are considered to be much more accurate indicators of the portfolio’s strength.