Definition: Year to Date income, also called year to date earnings, represents the amount of profit or net income that the company earned up to that point in the year. In other words, it’s the cumulative earnings from the beginning of the fiscal year to the present date.
What does year to date income mean?
What is the definition of year to date income? Managers look at many different numbers during the course of a year to evaluate the progress and standings of the company. One of the numbers that management looks at is the year-to-date income.
Let’s take a look at an example.
For example, if a manager wanted to look at the year-to-date income in March, a compiled income statement for January, February, and March would be prepared. This represents all of the income that the company made up to that point, March, in the year. This is a standard example of a calendar year company, but not all businesses’ fiscal years are based on a calendar year.
Some companies close their fiscal year in the middle of a calendar year instead of the end of the calendar year. For instance, a company with a January year-end will have a fiscal year from February 1, 2013 to January 31, 2014. Year-to-date income for a fiscal year company would start at the beginning of their fiscal year– not the beginning of the calendar year.
Using the same example as before, the year-to-date income in March for a January fiscal year end company would consist of income from only February and March. Their fiscal year started February 1st, so the income made up to that point in their fiscal year only included February and March income.
Define Year to Date Income: YTD income is the total earnings a company makes from the first day of the year to the present day. Thus, if today’s date was June 30th, YTD income would be the amount earned between January 1 and June 30.