Let's say there are two companies that have different reporting months for annual reports. Company "C12" report on 12 month and "C8" on 8 month.
Now consider the timeline of possible events:
- 2000-1, economy is great, company C12 published report with large Revenue.
- 2000-2, global economical crisis started, sales for all companies are down.
- 2000-9, crisis continues, company C8 published report with small Revenue.
- 2001-1, crisis continues, company C12 published report with small Revenue.
At the time 2000-9 we have two reports:
C12 2000-1 large revenue and
C8 2000-9 small revenue. And we may incorrectly decide to sell C8 and buy C12 because C12 has better older report that's hasn't been affected by crisis.
How to deal with that? I'm thinking about a way to maybe using trends over say 10 companies to calculate market trend and somehow normalise C12 and C8 revenues with that trend? But how exactly to do that?
I'm only interested in Revenue - Gross Sales.