# Annualised Indicators Clarification

Sorry for all the questions, but can someone confirm how an annualised indicator is calculated. In the manual it states that an annualisation factor is applied e.g. a factor of 12 to the numerator when the denominator is a yearly population figure. My question is does this hold true for all numerators and denominators e.g. if the numerator is daily and the denominator weekly, will factors of 365 and 52 be applied respectively?

Dan

Hi Dan

Yes it will take the period type of the aggregation period into account. The annualization factor is defined as

365 / number-of-days-in-aggregation-period

So if you have weekly data in the numerator and yearly data in the denominator for an annualized indicator, then the result is multiplied with an annualization factor equal to

365 / 7 = 52,2

Note that annualization only applies to indicators with yearly data in the denominator, as suggested in the name…

Lars

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On Wed, Oct 31, 2012 at 10:56 AM, Daniel Bridges dbridges@akrosresearch.com wrote:

Sorry for all the questions, but can someone confirm how an annualised indicator is calculated. In the manual it states that an annualisation factor is applied e.g. a factor of 12 to the numerator when the denominator is a yearly population figure. My question is does this hold true for all numerators and denominators e.g. if the numerator is daily and the denominator weekly, will factors of 365 and 52 be applied respectively?