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January 26, 2023

Moving Annual Average - a powerful data transformation

Learn how to use a process to calculating an MAT

We can’t use an MAT for a stock type item (like Accounts Receivable or Headcount) or a statistic (such as gross margin % or the £/$ Exchange Rate) because totalling these items overtime periods doesn’t make any sense.

In a previous post, we looked at the Moving Annual Total (MAT) as a simple, powerful way of eliminating seasonality within a 12 month period to enable the underlying trend of a data series to be discovered.

The MAT works fine for items that flow, like Sales, Profit and Shipment Volumes because these can be cumulated over time periods to provide meaningful totals.  But we can’t use an MAT for a stock type item (like Accounts Receivable or Headcount) or a statistic (such as Gross Margin % or the £/$ Exchange Rate) because totalling these items over time periods doesn’t make any sense. The solution is to calculate the Moving Annual Average (MAA).  The simplest way to calculate this is to use a very similar process to calculating an MAT - the end result is then divided by 12 (or however many periods we have within our year) to provide an average monthly value.

In cases of statistics like Gross Margin % (made from a flow item divided by another flow item), we can construct a more accurate weighted average value for each month by calculating the total of the last 12 months for both the numerator and denominator of the ratio and then dividing one by the other.

Mode comparison trend

A statistic such as Return on Capital Employed % (made from a flow item divided by a stock item) requires a more elaborate calculation, because by convention the value for such a ratio is normally displayed as an annual value.  Hence, we need to calculate the total of the last 12 months Profit and divide by the weighted average of Capital Employed over that 12 month period. The MAA transformation of data is very flexible because it can be applied to all types of data items, whether they are flows, stocks or statistics.  By comparison, MATs can only be calculated for flow type items so must be used with care.

What’s a Rich Text element?

The rich text element allows you to create and format headings, paragraphs, blockquotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.

Static and dynamic content editing

A rich text element can be used with static or dynamic content. For static content, just drop it into any page and begin editing. For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Voila!

How to customize formatting for each rich text

Headings, paragraphs, blockquotes, figures, images, and figure captions can all be styled after a class is added to the rich text element using the "When inside of" nested selector system.

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Abhishek Singh
Customer Director US
Abhi joined us in 2011 and heads up our partnership activities from our US office. A devoted fan of the Indian cricket team and, when not watching cricket, plays cricket at a high level himself.
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