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Last Fiscal Year (LFY)

What is 'Last Fiscal Year - LFY'

The most recent 12-month accounting period that a business uses when determining its annual financial performance. The SEC requires businesses to list their last fiscal year's revenue (in addition to other financial figures) in their 10-Q filings.

Analysts and management will often use figures and metrics from a company's last fiscal year in order to forecast whether or not a business's current performance will outdo that of the previous fiscal year.

Explaining 'Last Fiscal Year - LFY'

For example, ABC Corporation's fiscal year starts and ends in February, and it is currently July. If it were to list its revenue from the last fiscal year, it would show the results that took place from February 1st of the previous year to January 31st of the current year.

However, the inclusion of one-time financial anomalies in the last fiscal year's results may cause an ineffective comparison, as one-time non-operating events could skew a company's metrics.

For example, ABC Corporation sold a factory for $1 million and it reported the cash as revenue in the last fiscal year's financial statements. Unless it is specified that the extra million dollars was not from its regular operations, individuals may mistakenly believe that ABC Corp.'s operations generated an extra million dollars.


Further Reading


Economic liberalization in China and structural adjustment of Hong Kong manufacturing
s-space.snu.ac.kr [PDF]
… expenditure, export, and import are relatively high in comparison with those of nominal or financial variables … ables are not shown to be the significant factors of the income growth during the last three decades … Both fiscal and monetary policies were also adopted by the Taiwan …

Alternative econometric approaches for analysing the role of the financial sector in economic growth: Time-series evidence from LDCsAlternative econometric approaches for analysing the role of the financial sector in economic growth: Time-series evidence from LDCs
www.sciencedirect.com [PDF]
… expenditure, export, and import are relatively high in comparison with those of nominal or financial variables … ables are not shown to be the significant factors of the income growth during the last three decades … Both fiscal and monetary policies were also adopted by the Taiwan …

Manufacturing agglomeration as incentives to Asian FDI in China after WTOManufacturing agglomeration as incentives to Asian FDI in China after WTO
www.sciencedirect.com [PDF]
… expenditure, export, and import are relatively high in comparison with those of nominal or financial variables … ables are not shown to be the significant factors of the income growth during the last three decades … Both fiscal and monetary policies were also adopted by the Taiwan …

LAST IN, LAST OUT'?LAST IN, LAST OUT'?
books.google.com [PDF]
… expenditure, export, and import are relatively high in comparison with those of nominal or financial variables … ables are not shown to be the significant factors of the income growth during the last three decades … Both fiscal and monetary policies were also adopted by the Taiwan …

Is financial globalization beneficial?Is financial globalization beneficial?
onlinelibrary.wiley.com [PDF]
… expenditure, export, and import are relatively high in comparison with those of nominal or financial variables … ables are not shown to be the significant factors of the income growth during the last three decades … Both fiscal and monetary policies were also adopted by the Taiwan …

Why are buyouts levered? The financial structure of private equity fundsWhy are buyouts levered? The financial structure of private equity funds
onlinelibrary.wiley.com [PDF]
… expenditure, export, and import are relatively high in comparison with those of nominal or financial variables … ables are not shown to be the significant factors of the income growth during the last three decades … Both fiscal and monetary policies were also adopted by the Taiwan …



Q&A About Last Fiscal Year (LFY)


What is the most recent 12-month accounting period that a business uses when determining its annual financial performance?

The most recent 12-month accounting period that a business uses when determining its annual financial performance is the last fiscal year.

Why might individuals mistakenly believe that ABC Corp.'s operations generated an extra million dollars if they do not know about this anomaly ?

Individuals may mistakenly believe that ABC Corp.'s operations generated an extra million dollars if they do not know about this anomaly because they

What does the SEC require businesses to list in their 1Q filings?

The SEC requires businesses to list their last fiscal year's revenue in their 1Q filings.

When does ABC Corporation's Fiscal Year start and end?

ABC Corporation's Fiscal Year starts on February 1st and ends on January 31st.

Why might one-time financial anomalies skew results for companies reporting their revenue from the last fiscal year?

One time non operating events could skew results for companies reporting their revenue from the last fiscal year because these events are often one time occurrences, such as selling an asset at fair value, which would distort future projections based on historical data.

Is it necessary to specify if an extra million dollars was not generated by regular operations when reporting this figure as revenue from your latest LFY ?

Yes, it is necessary to specify if an extra million dollars was not generated by regular operations when reporting this figure as revenue from your latest LFY .

How can analysts and management forecast whether or not a business's current performance will outdo that of the previous fiscal year?

Analysts and management can use figures and metrics from a company's last fiscal year in order to forecast whether or not a business's current performance will outdo that of the previous fiscal year.

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