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Blog · Forecast and pipeline

Reading a measure before the period closes: month-to-date without fooling yourself

Why a month-to-date figure read on the 12th misleads in three predictable ways, the day-of-month profile that says how much of a normal month has usually landed by each day, the projection that follows and its range, which measures can be read mid-period and which cannot, and the rule that a partial-period figure is always shown with its expected share and never beside a full period as if comparable.

The short answerA month-to-date figure on the 12th is usually not twelve thirty-firsts of the month, because revenue lands unevenly: invoicing runs, month-end pushes, weekday patterns. The day-of-month profile, from the company's own history, says what share of a normal month has landed by each day, and the projection is month-to-date over that share, with a range from how much the share has varied. Revenue and pipeline can be projected this way; share of wallet, coverage and concentration cannot be read mid-period at all, and are shown as last full period. A partial figure is always shown with its expected share, never beside a full month as if comparable.

On the 12th, revenue is at 31 percent of plan and the sales leader calls a meeting. By the 31st it is at 102 percent, because that is how the company's months land. The day-of-month profile would have said so on the 12th. This guide sets out the profile, the projection and its range, which measures can be read mid-period, and the display rule.

Three ways month-to-date misleads

Misleading read Why
Scaling by days elapsed Revenue lands unevenly; the last week is often a third of the month
Comparing to last month's full figure Partial against full, on the same chart
Reading a ratio mid-period Partial numerator, full denominator; the ratio means nothing

The day-of-month profile

From the company's own trailing twelve months:

Share landed by day d = median over months of (revenue through day d ÷ month total)

Day Median share landed Low High
5 9% 6% 13%
12 26% 21% 32%
20 51% 45% 58%
26 72% 66% 79%
31 100%

The projection

Projected month = month-to-date ÷ share landed by today Range = month-to-date ÷ high share, to month-to-date ÷ low share

On the 12th, month-to-date $1.30m, share 26 percent (21 to 32): projected $5.0m, range $4.1m to $6.2m. Plan $4.2m. The range spans the plan, and the honest statement is that the month is on track within the range, not that it is at 31 percent.

Which measures can be read mid-period

Measure Mid-period Shown as
Revenue against plan Projected, with range Projection and range
Pipeline closing this period Yes; it is a snapshot As at today
Coverage at cadence No: cadence is per period Last full period, or rolling window stated
Share of wallet No Last full period
Concentration No Last full period
Dormancy Yes: days silent is a point-in-time measure As at today
Untouched list Yes As at today

The display rule

A partial-period figure is shown with the share of period expected to have landed, and its projection with a range. It is never placed beside a full period as a comparable bar.

Where it goes wrong

Days-elapsed scaling. The meeting on the 12th.

Partial beside full. The chart that shows every month collapsing.

Ratios read mid-period. Coverage at 40 percent on the 12th, because the cadence is monthly.

Profile from a benchmark. The company's own months land its own way.

Every day, the profile and the range

Mapped once, the ledger's history produces the day-of-month profile, and each day's month-to-date is shown with its expected share, its projection and its range, with the ratio measures held at the last full period. Covirage builds this from the exports as they are. The forecast analysis solution describes the setup, and the run rate guide covers the same trap over longer windows.

Questions people ask

Why not just scale by days elapsed?

Because if forty percent of a normal month's revenue lands in the last five days, the 12th has typically seen a quarter of the month, not forty percent. Scaling by days projects a miss that is not there, and the sales leader spends two weeks reacting to it. The profile is from the company's own history and it is usually stable.

What is the range?

The share landed by the 12th varies month to month; the projection is the month-to-date figure divided by the range of that share, low to high, from the trailing twelve months. It is a range on purpose. A single projected number on the 12th is a guess with decimals.

Which measures cannot be read mid-period?

Any ratio whose denominator is a period total: share of wallet, coverage at cadence, concentration, products per customer. Mid-period they compare a partial numerator to a partial or a full denominator and mean nothing. They are shown as of the last full period, labelled.