What Is the 52-Week Range?

The 52-week range is a data point traditionally reported by printed financial news media, but more modernly included in data feeds from financial information sources online. The data point includes the lowest and highest price at which a stock has traded during the previous 52 weeks.

Investors use this information as a proxy for how much fluctuation and risk they may have to endure over the course of a year should they choose to invest in a given stock. Investors can find a stock’s 52-week range in a stock’s quote summary provided by a broker or financial information website. The visual representation of this data can be observed on a price chart that displays one year’s worth of price data.

Understanding the 52-Week Range

The 52-week range can be a single data point of two numbers: the highest and lowest price for the previous year. But there is much more to the story than these two numbers alone. Visualizing the data in a chart to show the price action for the entire year can provide a much better context for how these numbers are generated.

Since price movement is not always balanced and rarely symmetrical, it is important for an investor to know which number was more recent, the high or the low. Usually an investor will assume the number closest to the current price is the most recent one, but this is not always the case, and not knowing the correct information can make for costly investment decisions.

Two examples of the 52-week range in the following chart show how useful it might be to compare the high and low prices with the larger picture of the price data over the past year.

These examples show virtually the same high and low data points for a 52-week range (set 1 marked in blue lines) and a trend that seems to indicate a short-term downward move ahead.

The overlapping range on the same stock (set 2 marked in red lines) now seems to imply that an upward move may be following at least in the short term. Both of these trends can be seen to play out as expected (though such outcomes are never certain). Technical analysts compare a stock’s current trading price and its recent trend to its 52-week range to get a broad sense of how the stock is performing relative to the past 12 months. They also look to see how much the stock’s price has fluctuated, and whether such fluctuation is likely to continue or even increase.

The information from the high and low data points may indicate the potential future range of the stock and how volatile its price is, but only the trend and relative strength studies can help a trader or analyst understand the context of those two data points. Most financial websites that quote a stock’s share price also quote its 52-week range. Sites like Yahoo Finance, Finviz.com and StockCharts.com allow investors to scan for stocks trading at their 12-month high or low.

Current Price Relative to 52-Week Range

To calculate where a stock is currently trading at in relations to its 52-week high and low, consider the following example:

Suppose over the last year that a stock has traded as high as $100, as low as $50 and is currently trading at $70. This means the stock is trading 30% below its 52-week high (1-(70/100) = 0.30 or 30%) and 40% above its 52-week low ((70/50) – 1 = 0.40 or 40%). These calculations take the difference between the current price and the high or low price over the past 12 months and then convert them to percentages.

52-Week Range Trading Strategies

Investors can use a breakout strategy and buy a stock when it trades above its 52-week range, or open a short position when it trades below it. Aggressive traders could place a stop-limit order slightly above or below the 52-week trade to catch the initial breakout. Price often retraces back to the breakout level before resuming its trend; therefore, traders who want to take a more conservative approach may want to wait for a retracement before entering the market to avoid chasing the breakout.

Volume should be steadily increasing when a stock’s price nears the high or low of its 12-month range to show the issue has enough participation to break out to a new level. Trades could use indicators like the on-balance volume (OBV) to track rising volume. The breakout should ideally trade above or below a psychological number also, such as $50 or $100, to help gain the attention of institutional investors.

What Is Accrued Liability?

The term “accrued liability” refers to an expense incurred but not yet paid for by a business. These are costs for goods and services already delivered to a company for which it must pay in the future. A company can accrue liabilities for any number of obligations and are recorded on the company’s balance sheet. They are normally listed on the balance sheet as current liabilities and are adjusted at the end of an accounting period.

Understanding Accrued Liability

An accrued liability is a financial obligation that a company incurs during a given accounting period. Although the goods and services may already be delivered, the company has not yet paid for them in that period. They are also not recorded in the company’s general ledger. Although the cash flow has yet to occur, the company must still pay for the benefit received.

Accrued liabilities, which are also called accrued expenses, only exist when using an accrual method of accounting. The concept of an accrued liability relates to timing and the matching principle. Under accrual accounting, all expenses are to be recorded in financial statements in the period in which they are incurred, which may differ from the period in which they are paid.

The expenses are recorded in the same period when related revenues are reported to provide financial statement users with accurate information regarding the costs required to generate revenue.

The cash basis or cash method is an alternative way to record expenses. But it doesn’t accrue liabilities. Accrued liabilities are entered into the financial records during one period and are typically reversed in the next when paid. This allows for the actual expense to be recorded at the accurate dollar amount when payment is made in full.

Types of Accrued Liabilities

There are two types of accrued liabilities that companies must account for, including routine and recurring. We’ve listed some of the most important details about each below.

Routine Accrued Liabilities

This kind of accrued liability is also referred to as a recurring liability. As such, these expenses normally occur as part of a company’s day-to-day operations. For instance, accrued interest payable to a creditor for a financial obligation, such as a loan, is considered a routine or recurring liability. The company may be charged interest but won’t pay for it until the next accounting period.

Non-Routine Accrued Liabilities

Non-routine accrued liabilities are expenses that don’t occur regularly. This is why they’re also called infrequent accrued liabilities. They aren’t part of a company’s normal operating activities. A non-routine liability may, therefore, be an unexpected expense that a company may be billed for but won’t have to pay until the next accounting period.

Journal Entry for an Accrued Liability

Accounting for an accrued liability requires a journal entry. An accountant usually marks a debit and a credit to their expense accounts and accrued liability accounts respectively.

This is then reversed when the next accounting period begins and the payment is made. The accounting department debits the accrued liability account and credits the expense account, which reverses out the original transaction.

When Do Accrued Liabilities Occur?

Accrued liabilities arise for a number of reasons or when events occur during the normal course of business. For instance:

• A company that purchases goods or services on a deferred payment plan accrues liabilities because the obligation to pay in the future exists.
• Employees may perform work for which they haven’t received wages.
• Interest on loans may be accrued if interest fees were incurred since the previous loan payment.
• Taxes owed to governments may be accrued because they are not due until the next tax reporting period.

At the end of a calendar year, employee salaries and benefits must be recorded in the appropriate year, regardless of when the pay period ends and when paychecks are distributed. For example, a two-week pay period may extend from December 25 to January 7.

Although they aren’t distributed until January, there is still one full week of expenses for December. The salaries, benefits, and taxes incurred from Dec. 25 to Dec. 31 are deemed accrued liabilities. These expenses are debited to reflect an increase in the expenses. Meanwhile, various liabilities will be credited to report the increase in obligations at the end of the year.

Accrued Liability vs. Accounts Payable (AP)

Accrued liabilities and accounts payable (AP) are both types of liabilities that companies need to pay. But there is a difference between the two. Accrued liabilities are for expenses that have not yet been billed, either because they are a regular expense that doesn’t require a bill (i.e., payroll) or because the company hasn’t yet received a bill from the vendor (i.e., a utility bill).

As such, accounts payable (or payables) are generally short-term obligations and must be paid within a certain amount of time. Creditors send invoices or bills, which are documented by the receiving company’s AP department. The department then issues the payment for the total amount by the due date. Paying off these expenses during the specified time helps companies avoid default.

Examples of Accrued Liability

As noted above, companies can accrue liabilities for many different reasons. As such, there are many different kinds of expenses that fall under this category. The following are some of the most common examples:

• Wage expenses: This is for work already performed by employees. The work is paid for in the next accounting period. This is common with employers who pay their employees bi-weekly, because a pay period may extend into the following accounting month or year.
• Goods and services: Some companies place orders and receive goods and services from their suppliers without paying for them immediately. As an accrued expense, the receiving company pays for these goods and services at a later date.
• Interest: A company may have an outstanding loan for which the interest isn’t yet due. The lender may require this expense.

What Is Assemble-to-Order (ATO)?

Assemble-to-order (ATO) is a business production strategy where products that are ordered by customers are produced quickly and are customizable to a certain extent. It typically requires that the basic parts of the product are already manufactured but not yet assembled. Once an order is received, the parts are assembled quickly and the final product is sent to the customer.

Understanding Assemble-to-Order (ATO)

The assemble-to-order strategy is a hybrid between the make-to-stock strategy (MTS) and the make-to-order strategy (MTO). A make-to-stock strategy is one where products are fully produced in advance. The idea is to build an inventory that matches expected or anticipated consumer demand. This method would consist of setting a production level, building up inventory, and then attempting to sell as much assembled product as possible. It’s used mostly for high-volume goods, consumables, and items that can be bought in bulk or as a single unit.

A make-to-order strategy is one where products are manufactured once the order has been received. Production is driven by demand and items are only produced when orders are confirmed. In other words, the supply chain operation does not begin until there is evidence of sufficient customer demand. This strategy is often employed for high-end goods or items made individually or in small batches.

The ATO strategy attempts to combine the benefits of both make-to-order and make-to-stock—getting products into customers’ hands quickly while allowing for the product to be adapted or altered in certain ways, as per customer request. In most cases, the time and costs associated with building the product from its components are minimal. However, the time and costs to build the components, which are usually ordered from a supplier, can be considerable.

Enabled by technology, advancements in production processes and inventory management systems have played a big part in making assemble-to-order strategies a reality. Add cheaper methods of shipping products, and the strategy has been a boon for product customization opportunities.

Pros and Cons Assemble-to-Order (ATO)

Like many methods that chart a middle course, assemble-to-order has both advantages and disadvantages.

Example of Assemble-to-Order (ATO)

Consider a manufacturer of personal computers. It might have all of the essential parts of a computer—motherboards, graphic cards, processors, monitors, keyboards—in stock and already manufactured. The company depends on various suppliers for these components.

When orders for new PCs arrive, it is easy for the company to assemble and customize the computers using the various components. The process is driven by customer demand, however, and until the order arrives, the components sit on shelves.

What Is AARP?

The American Association of Retired Persons, commonly known by its acronym AARP, is America’s leading organization for people aged fifty and older, providing member benefits, marketing services, and lobbying on their behalf.

Founded in 1958 by retired educator Dr. Ethel Percy Andrus as the American Association of Retired Persons, AARP is a nonprofit, nonpartisan association with a membership of more than 38 million.

How AARP Works

AARP provides information, education, research, advocacy, and community services through a nationwide network of local chapters and experienced volunteers. It focuses its work on consumer issues, economic security, work, health, and independent living issues, and engages in legislative, judicial, and consumer advocacy in these areas.

AARP is considered a powerful lobbying group as well as a successful business, selling life and health insurance, investment products, and other financial and non-financial services. It is also an independent publisher, offering Modern Maturity magazine and the monthly AARP Bulletin. AARP produced $1.70 billion in revenue in 2019, which came from a variety of endeavors, including advertising revenue from its publications, and from royalties for licensing its name and logo.

However, membership fees represent the most significant source of revenue. It is registered as a 501(c)(4) non-profit by the Internal Revenue Service (IRS), which means it is permitted to engage in lobbying. It also administers some 501(c)(3) public charity operations while some of its other operations are for-profit.

AARP Affiliates

There are several AARP-affiliated organizations, and they include the following:

• The AARP Foundation is a non-profit charity that assists people over age 50 who may be at economic and social risk. Within the foundation operates AARP Experience Corps., which encourages tutoring and mentoring of children, and AARP Institute, which holds its gift annuity funds.
• AARP Services develop and manage new products and services and are for-profit.
• Legal Counsel for the Elderly is a non-profit that provides legal services for seniors in Washington, D.C.
• AARP Financial Services holds AARP real estate and is for-profit.
• The AARP Insurance Plan administers some AARP group insurance plans.

AARP also has many other initiatives, including promoting driver safety (AARP Driver Safety), producing television programming that targets seniors, and engaging in sponsorships that support social causes, such as raising awareness of and fighting hunger in America.

AARP manages outreach programs that address housing issues and social isolation among seniors. AARP has also initiated and managed programs that advocate for the strengthening of Social Security and Medicare.

Criticism of the AARP

AARP is one of the strongest lobbying groups in America, and because of its efforts, it often receives attention for exerting its influence in Washington, D.C., and in state capitals. Its non-profit operations also receive millions of dollars per year in the form of federal grants. Some argue that its positions fall into the more liberal part of the political spectrum.