Quarter (Q1, Q2, Q3, Q4)

A quarter (thing) alludes to one of four generally equal periods of the year, each involved three consecutive months.

Features

• A quarter alludes to one-fourth of a year and is commonly communicated as Q1 for the primary quarter, and so on, and can be communicated with the year, for example, Q1 2021 (or Q121).
• A quarter is a three-month period on a company's financial calendar that acts as a basis for periodic financial reports and the paying of dividends.
• Quarterly reports (known as 10-Q filings with the SEC) and earnings are essential snippets of data for investors and analysts.

FAQ

What Is a Fiscal Quarter?

A fiscal quarter is a three-month period where a company reports its financial outcomes. As its name proposes, there are four quarterly periods in a year, meaning a public corporation would issue four quarterly reports each year. Companies and investors the same utilize fiscal quarters to keep track of their financial outcomes and business improvements over the long haul. These quarters are frequently alluded to as Q1, Q2, Q3, and Q4.

What Are the Pros and Cons of Quarterly Reporting?

The principal advantage of quarterly reporting is that it permits investors more data on which to base their investment choices. Instead of waiting until a company documents its annual report, investors can peruse their quarterly filings to get a feeling of how the business is advancing consistently. This additional transparency likewise benefits writers and regulators. Some have contended, nonetheless, that quarterly reporting makes companies and investors more arranged toward short-term results.

Are Quarters Always Lined Up to the Calendar Year?

Quarters don't necessarily in every case line up with the calendar year. For example, in the event that a company decides to have its fiscal year starting in February as opposed to January, then its most memorable quarter would comprise of February, March, and April. Companies at times decide to do this assuming they maintain that their fiscal year should end in their own pinnacle season. On the other hand, since completing the year frequently includes a ton of extra accounting work, a few companies decide to end their fiscal year on a generally quiet month.