Definition
In business context, the process of adjusting data or metrics to account for anomalies, seasonality, or one-time events to reveal underlying trends. It's statistical cosmetics that make ugly quarters look presentable to investors.
Example Usage
After normalizing for the product recall and restructuring charges, our earnings actually beat expectations.
Origin
Statistical methodology applied to financial reporting and business analytics.
Fun Fact
The phrase 'normalized EBITDA' has become so abused that some analysts joke it stands for 'Earnings Before I Tricked the Dumb Auditors.'
Source: Financial reporting and data analysis terminology
Related Terms
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See “normalizing” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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