Quarter

Key Highlights

• 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.

• Companies divide their financial year into four parts, called quarters. While some follow the calendar year (Jan–Dec), others set their own schedule.

What is a Quarter?

In finance, 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. Typically, each quarter begins with the first month of a calendar quarter (January, April, July, October) and ends with the last month of that same calendar quarter.

Traditional Calendar Quarters

Q1: Jan 01 - Mar 31

Q2: Apr 1 – Jun 30

Q3: July 1 – Sep 30

Q4: Oct 1 – Dec 31

Fiscal Quarters

Companies divide their financial year into four parts, called quarters. While some follow the calendar year (Jan–Dec), others set their own schedule. For example, a company with a fiscal year from October to September would have Q1 from October to December instead of January to March.

Why Do Quarters Matter?

• Tracking Performance: Public companies report their earnings every quarter, helping investors and analysts understand how the business is doing.

• Paying Dividends: Many companies distribute profits to shareholders every three months.

• Business Planning: Regular check-ins every quarter allow businesses to adjust strategies, set goals, and keep stakeholders informed.