Meaning & use

annualized

adjective, verb·Academicbusinessfinance

Last updated

UK/ˈæn.ju.ə.laɪzd/
US/ˈæn.ju.ə.laɪzd/

“annualized” is a form of “annualize”.

Meanings

  1. adjectivebefore a nounbusinessfinance

    Calculated or adjusted to show a yearly rate, especially from a shorter period.

    Grammar: Usually comes before a noun: 'annualized return', 'annualized growth'.

    Patterns

    • annualized return
    • annualized growth rate
    • annualized inflation

    The fund reported an annualized return of 8% over five years.

    The annualized inflation rate rose to 3.2% last month.

    Analysts calculated the annualized growth of the company's revenue.

  2. verbtransitivebusinessfinance

    Past tense and past participle of 'annualize': converted a rate to a yearly basis.

    Grammar: Used as a verb in passive or perfect forms: 'has been annualized'.

    Patterns

    • annualize a rate
    • be annualized

    The quarterly figures were annualized to compare with last year's data.

    They annualized the monthly sales to estimate yearly performance.

Word forms

base formannualize
third person singularannualizes
past tenseannualized
past participleannualized
-ing formannualizing

Common combinations

annualized return
The annualized return on the investment was 6%.
annualized growth rate
The economy showed an annualized growth rate of 2.5%.
annualized inflation
Annualized inflation has been falling for three months.
annualized basis
The figures are presented on an annualized basis.

Synonyms and how they differ

yearly
Yearly simply means happening once a year; annualized specifically means adjusted to a yearly rate from a shorter period.

Word family

annualize verb
To convert a rate or figure to a yearly basis.
annual adjective
Happening once a year.
annually adverb
Once a year; yearly.

Commonly confused: annualized or annul?

annualized vs annul

Annul means to cancel or invalidate something (like a marriage); annualized is about yearly rates.

Practice

Choose the correct word: The quarterly earnings were ______ to show the yearly rate.

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