MoneyBestPal Team
A three-month period on a company's financial calendar.
Image: Moneybestpal.com

A quarter on a company's financial calendar is referred to as a three-month term in finance. Businesses utilize quarterly financial reporting to update shareholders, investors, and other interested parties on their performance.

The majority of businesses operate on a calendar year that starts on January 1 and concludes on December 31. This means that each quarter corresponds to a particular period in the calendar: Q1 covers the period from January to March, Q2 from April to June, Q3 from July to September, and Q4 from October to December.

Companies publish their financial results, including revenues, costs, profits, and losses, at the end of each quarter. Quarterly reports that are submitted to financial regulators and made publicly available frequently contain these results.

Quarterly reports can affect a company's stock price and offer crucial information about its financial situation. These reports are carefully examined by investors and analysts before they decide whether to invest in a firm or not. In order to affect market expectations, companies may also issue guidance for the following quarter.

Monitoring quarterly performance is a crucial component of financial analysis and decision-making overall. It enables analysts and investors to assess a company's financial health over time and make defensible choices based on the patterns and trends seen in its quarterly reports.