annualized

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Related to annualized: Annualized Return

Annualize

To express a variable in yearly terms even though the variable does not directly apply to a year. That is, an annualized variable has been mathematically converted to yearly terms. For example, if the return rate on an investment is 2% after one month, one computes the annualized return by multiplying by 12, resulting in a 24% return rate. An annualized variable is often theoretical; there is no guarantee that the return rate in the example above will be 12% if it is calculated after a month or two. Annualizing usually does not take into account the effects of compounding.

annualized

Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. As an example, disregarding the effects of compounding, the earning of a 3% return on an investment during a 4-month period is equal to 9% ( 12/4 × 3%) on an annualized basis.
References in periodicals archive ?
This is a large increase from the first-quarter annualized growth rate of 2.
9 million units by 2009 for an annualized growth rate of 1.
Thus, like an individual, a trust can avoid penalties for underpaying estimated tax either by making quarterly payments of at least one fourth of the prior year's taxes or basing those quarterly estimates on annualized income for the current year.
91% for the first nine months of 1996, this fund had the strongest showing, with a five-year annualized total return of 14.
Income earned in the 12th month is never taken into account under the annualized method.
This calculation is made by dividing the short period AMT income by the number of months in the period and then multiplying the resulting figure by 12 to determine the annualized AMT income.
7% annualized growth rate through 2009, at which time shipments will approach 10 million units.
The group projects continued annualized growth of approximately 3% for total tire shipments through 2008 as the nation's gross domestic product (GDP) and industrial production index (IPI) gain momentum.
In Letter Ruling (TAM) 9233001, the IRS held that a large corporation was not required to include subpart F income when computing its quarterly installments under the annualized income installment method for estimated tax purposes.

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