Saturday, May 13, 2023

Analytical Calendar - 006 - Date Conversion and Calculation

Analytical Calendar

Date Conversion and Calculation

Date calculation is very complicated. First of all, they should be converted into the same granularity before calculation can be performed. Using different granularity for calculation may generate unexpected results as understandings of date granularities can be idiosyncratic.

For example, what should be the date to compare the data on the date 2022-02-29, 1 month before? It is 2022-01-29, as the month component moves 1 month before the date.  By the same token, to compare 2022-03-31 1 month ago, what is the result? It is 2022-02-29. Since after moving the month component, the date does not exist, i.e. 2022-02-31. Then, it is assumed the month-end date, i.e. 2022-02-29. It is not easy to be aware of all of these calculations because there might be already functions provided in the BI tool for all these implicit situations. The date conversion is, in fact, the shifting to the date component.

However, there are date calculations actually not available in the tools. For example, week calculation.  A week before means 7 days before. However, for the case 1 week before 2022-W1, it has two scenarios:

If the complete week model is used:

·         2022-W1 includes 2022-01-02 to 2022-01-08.

·         One week before is 2021-W52 including 2021-12-26 to 2022-01-01.

If the incomplete week model is used:

·         2022-W1 includes only 2022-01-01.

·         One week before is 2021-W53 including 2021-12-26 to 2022-12-31.

The calculation is not straightforward, it depends on which week model is used.

There is another example like YTD. Taking 2021-03-02 YTD to compare 1 year before. The analysis period is from 2021-01-01 to 2021-03-02 and the comparison period is from 2020-01-01 and to 2020-03-02. It seems no problem.  If it is to consider the date 2020-02-29, there is 1 day difference.  For a fair comparison it should have the date range 2020-01-01 to 2020-03-01. When performing analysis for a business, 1 day might make a big difference in revenue.

All these kinds of calculations on the fly are complicated and difficult to control. It is certain that the formula is always going into errors because of handling large number of situations and exceptions.

It is, therefore, best to pre-calculate and confirm all the date models to be used beforehand.

 

 


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