Definition of MTD
- Month till date or Month to date (MTD) is the period starting from the beginning of the current month up until the present date, not including the current date. For example, the MTD for the date 27th May is from 1st May till 26th May.
- The reason for not including the current date is because it might not be complete yet.
Uses of MTD
- The use of MTD is that it can be used to provide information about a particular activity for a particular time period.
- It is also useful to help one identify trends and predict future requirements or behaviour.
- It helps one identify problems in real time, enabling them to undertake course correction with immediate effect.
- It has applications across a range of sectors and a range of activities.
- In the context of economics and finance, MTD can be used to describe the returns so far in a particular month. It can be used to compare current performance with past periods.
Drawbacks
- The figures shown in MTD can be misleading if not much has ensued in the month in question.
- The figures shown are also more sensitive to early changes than late changes.
- If the date is unclear, then the MTD cannot be calculated.
