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. Year

    A period of time that is comprised of 12 consecutive months. ...
  3. Fiscal Year - FY

    A period that a company or government uses for accounting purposes ...
  4. Tax Year

    The period of time which is covered by a particular tax return. ...
  5. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities ...
  6. Short Tax Year

    A tax year, whether fiscal or calendar, that is less than one ...
Related Articles
  1. Investing Basics

    Revenue Projections Show Profit Potential

    Examining how a company makes money can offer clues about its earnings potential.
  2. Markets

    Introduction To Fundamental Analysis

    Learn this easy-to-understand technique of analyzing a company's financial statements and reports.
  3. Options & Futures

    Advanced Financial Statement Analysis

    Learn what it means to do your homework on a company's performance and reporting practices before investing.
  4. Delivery duty paid (DDP) is a shipping term.
    Investing

    What does DDP Mean?

    Delivery duty paid (DDP) is a shipping term specifying that the seller is responsible for all costs associated with delivery of the goods to the buyer. It is usually used when goods are exported ...
  5. Fundamental Analysis

    What is a good interest coverage ratio?

    Learn the importance of the interest coverage ratio, one of the primary debt ratios analysts use to evaluate a company's financial health.
  6. Fundamental Analysis

    What is a bad interest coverage ratio?

    Understand how interest coverage ratio is calculated and what it signifies, and learn what market analysts consider to be an unacceptably low coverage ratio.
  7. Active Trading Fundamentals

    What is liquidity risk?

    Learn how to distinguish between the two broad types of financial liquidity risk: funding liquidity risk and market liquidity risk.
  8. Technical Indicators

    What is a good gearing ratio?

    Understand the meaning of the gearing ratio, how it is calculated, the definition of high and low gearing, and how they reflect relative financial stability.
  9. Active Trading Fundamentals

    What does the gearing ratio say about risk?

    Find out why lenders and investors pay close attention to a firm's gearing ratios, and why both too much and too little borrowing can be risky.
  10. Investing Basics

    What is considered to be a bad gearing ratio?

    Understand the basics of gearing, including the net gearing ratio, what constitutes a bad gearing ratio and how this figure reflects financial stability.

You May Also Like

Hot Definitions
  1. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  2. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  3. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  4. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  5. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
  6. Annual Percentage Rate - APR

    The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents ...
Trading Center