# Annual basis

## Annual basis,

### Definition of Annual basis:

1. The term annual basis has multiple applications in finance. In each sense, it refers to an observed figure over the course of the year. It can also refer to something that happens every year.

2. Annual basis can refer to the return earned by an investment over the course of a year. Projections containing the phrase "on an annual basis" have usually used less than a year's worth of data to project a full year's worth of returns. Annual basis can also refer to the cost of something over the course of a year.

3. Mathematical technique employed in converting figures for a period of less-than or more-than one year to a twelve-month period.

### How to use Annual basis in a sentence?

1. The term annual basis has multiple applications in finance. In each sense, it refers to an observed figure over the course of the year. It can also refer to something that happens every year.
2. Salaries, interest rates, and returns are all often quoted on an annual basis.
3. Annual basis can be computed by extrapolating out from a shorter period of time.

Meaning of Annual basis & Annual basis Definition