26
Sep
2023
What is Moving annual total (MAT)? How it is calculated?
The moving annual total is the total value of a variable, such as sales figures for a product, over the course of the previous 12 months.
This is a rolling yearly sum, so changes at the end of each month with data from the new month added to the total and data from the first month of the period taken away.
The moving annual total is abbreviated as MAT.
In simple word, it is last 12 month revenue / sales.
For Example, Feb 2023 to Jan 2024 sales are called MAT Feb 2024 sales.
MAT is for the past 12 month sales, comparing two points MAT data evens out the fluctuations.
Calculation
Here’s how you can calculate a Moving Annual Total:
- Choose a specific month as your starting point. This can be the current month or any other month of interest.
- Calculate the total for the 12 months following that starting point. This involves adding up the data points (e.g., sales, revenue, units sold, etc.) for each of those 12 months.
- Move forward one month, and again calculate the total for the next 12 months.
- Repeat this process until you have calculated the MAT for each month over the desired time period.
Example of Moving Annual Total Calculation
MAT JAN 2024 = FEB-23+MAR-23+…..+DEC-23+JAN-24
MAT JUNE 2025 = JULY-2024+AUG-2024+……….+MAY-2025+JUNE-2025
Significance of Moving Annual Total
Moving Annual Total is often used in sales, revenue, and performance analysis to provide a more accurate representation of trends and performance over time, especially in industries with seasonality or fluctuations.
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