| ▲ | csomar 3 hours ago | |||||||
The problem is, annualized revenue doesn’t work when your income has a 3 standard of deviation month to month. It is standard for other fields/businesses but these tend to have stable month to month revenue. | ||||||||
| ▲ | dcre 2 hours ago | parent | next [-] | |||||||
It’s not deviating up and down. It’s deviating upward. It is necessarily going to wildly overstate the previous 12 months’ revenue while wildly understating the next 12 months’ revenue. There is no way to describe exponential growth in a single number that doesn’t do this. This is why adults with a brain look at the series. | ||||||||
| ▲ | nraynaud 2 hours ago | parent | prev [-] | |||||||
I would venture that's it's the whole reason they use it. because it doesn't work. | ||||||||
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