Stub Period

1 minutes read
Last updated: November 6, 2023

In many cases, there will be a period of time between the transaction closing date and the date of the next fiscal year-end. In our case, this is 2 months. We need to record what happens between the closing date and next fiscal year-end, so we create a “stub period” to record financial results during this time. We calculate income statement items for the stub period by multiplying the percentage of the current fiscal year remaining by the full fiscal year results.

 

Download Template

Stub Period

Try Macabacus for free to accelerate financial modeling in Excel.

Create Financial Models 10x Faster with Macabacus

Gain access to 100+ shortcuts, formula auditing visualizations, easy Excel-to-PowerPoint linking and productivity tools to help you accelerate financial modeling and presentations.

Start your Free Trial
 

Discover more topics

Build an operating model
In this tutorial, we will walk through how to build a general industry business operating model.
Read more
Build an M&A model
In this section, we demonstrate how to model a merger of two public companies in Excel.
Read more
Build an LBO model
In this tutorial, we will walk you through building an LBO model in Excel.
Read more
Asset and Stock Deals
The first step in purchase price allocation, or PPA, is to determine the purchase price.
Read more