Quarter (Financial Quarter)

Meaning :

A quarter (also called as Financial Quarter)is a three-month period used in business and finance to measure how well a company is doing, plan budgets, and report

earnings. The year is divided into four quarters: Q1, Q2, Q3, and Q4.

Example : 

For instance, Q1 (April–June) financial results shared by a company in India are  based on the financial year that starts in April.

How to Understand : 

Think of a quarter as a checkpoint for businesses.

Every three months, companies pause to review how they are doing, compare their  progress, and plan for the next steps.

This system helps standardize reporting across different industries.

Importance :

Quarters help companies track their growth and performance over time.

They assist in managing budgets effectively.

Quarters are used to prepare financial statements that show how much money a  company has made or lost.

Digital tools now help generate quarterly updates automatically, making it easier for  companies to stay transparent and make good decisions.