Dictionary of Accounting Terms: annualize
annualize
to extend an item to an annual basis. It is a procedure specified by the internal revenue code whereby taxable income for part of a year is multiplied by 12 and divided by the number of months involved. For example, if taxable income for 3 months is $20,000, it will be annualized as follows:
Dictionary of Finance and Investment Terms: annualize
annualize
to convert to an annual basis. For example, if a mutual fund earns 1% in a month, it would earn 12% on an annualized basis, by multiplying the monthly return by 12. Many economists annualize a monthly number such as auto sales or housing starts to make it easier to compare to prior years.
