Last Fiscal Year - LFY

AAA

DEFINITION of '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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Commercial Year

    A commercial year is a 360 day year composed of 12 months with ...
  2. Calendar Year

    The one-year period that begins on January 1 and ends on December ...
  3. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities ...
  4. Accounting Period

    The time span in which certain financial events took place. The ...
  5. Short Tax Year

    A tax year, whether fiscal or calendar, that is less than one ...
  6. SEC Form 10-Q

    A comprehensive report of a company's performance that must be ...
RELATED FAQS
  1. How is minimum transfer price calculated?

    A company that transfers goods between multiple divisions needs to establish a transfer price so that each division can track ... Read Full Answer >>
  2. What is the effective interest method of amortization?

    The effective interest method is an accounting practice used for discounting a bond. This method is used for bonds sold at ... Read Full Answer >>
  3. What does an unfavorable variance indicate to management?

    In managerial accounting, an unfavorable variance is discovered when a company's management performs a comparison between ... Read Full Answer >>
  4. Is there a way to include intangible assets in book-to-market ratio calculations?

    The book-to-market ratio is used in fundamental analysis to identify whether a company's securities are overvalued or undervalued. ... Read Full Answer >>
  5. What are some of the limitations and drawbacks of using a payback period for analysis?

    Limitations, or disadvantages, of using the payback period method in capital budgeting include the fact that it fails to ... Read Full Answer >>
  6. What are common concepts and techniques of managerial accounting?

    The common concepts and techniques of managerial accounting are all the concepts and techniques that surround planning and ... Read Full Answer >>
Related Articles
  1. Investing Basics

    Revenue Projections Show Profit Potential

    Examining how a company makes money can offer clues about its earnings potential.
  2. Options & Futures

    Advanced Financial Statement Analysis

    Learn what it means to do your homework on a company's performance and reporting practices before investing.
  3. Markets

    Introduction To Fundamental Analysis

    Learn this easy-to-understand technique of analyzing a company's financial statements and reports.
  4. Investing Basics

    Calculating Unlevered Free Cash Flow

    Unlevered free cash flow (UFCF) is the free cash flow of a business before interest payments.
  5. Taxes

    Understanding Write-Offs

    Write-off has different meanings depending on the context in which it is used, but generally refers to a reduction in value due to expense or loss.
  6. Economics

    What are Capital Goods?

    Capital goods are assets with a useful life of more than one year that are used for the production of income.
  7. Economics

    Understanding Capital Assets

    A capital asset is one that a company plans on owning for more than one year, and uses in the production of revenue.
  8. Fundamental Analysis

    What is Year-to-Date?

    Year-to-date (YTD) is a term that describes financial results from the beginning of the current year up to the day the financial number is reported.
  9. Economics

    What is Managerial Accounting?

    Managerial accounting is internally-based accounting that helps managers measure the results of their decisions.
  10. Credit & Loans

    What's a Hire Purchase?

    Hire purchase is a term used in Great Britain to describe an installment plan payment arrangement.

You May Also Like

Hot Definitions
  1. Treasury Yield

    The return on investment, expressed as a percentage, on the debt obligations of the U.S. government. Treasuries are considered ...
  2. Bund

    A bond issued by Germany's federal government, or the German word for "bond." Bunds are the German equivalent of U.S. Treasury ...
  3. European Central Bank - ECB

    The central bank responsible for the monetary system of the European Union (EU) and the euro currency. The bank was formed ...
  4. Quantitative Easing

    An unconventional monetary policy in which a central bank purchases private sector financial assets in order to lower interest ...
  5. Current Account Deficit

    A measurement of a country’s trade in which the value of goods and services it imports exceeds the value of goods and services ...
  6. International Monetary Fund - IMF

    An international organization created for the purpose of: 1. Promoting global monetary and exchange stability. 2. Facilitating ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!