How do you annualize?
Annualizing means to project a full year's financial figures based on partial year's income statement. For example, if you have financials statements for January-March, then you have only 1/4 of the year. You will need to take each individual line item in the financial statement and multiply by 4 to reach what the total for 12 months would be. If you have 5 months of data, you need to divide by 5 to determine what it would be for one month and then multiply that number by 12 to estimate what that item would be for 12 months. This can only be done for income statements NOT balance sheets.
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