Q1 means the first quarter of the year, composed of the first three months, including January, February, and March.
Subsequent months after March fall in the following quarters as given below.
- Q2 = April, May & June.
- Q3 = July, August, & September.
- Q4 = October, November, & December.
For instance, if someone says I will pay you back at the end of the first quarter, they mean they will pay you at the end of March.
Understanding the concepts of Q1, Q2, Q3, and Q4 is essential, as these terms are frequently used in financial reporting and analysis.
Please note that the above discussion is about calendar year only. There is another concept of fiscal year, which is commonly used by businesses and companies. The Government and companies generally use the fiscal year to report and understand financial reporting & budgeting.
The company’s fiscal/tax year may or may not align with the calendar year.
For instance, the company may choose its fiscal year from July 1, 2024, to June 30, 2025. In this case, Q1 and other quarters will be as given below.
Q1 = July, August, & September of 2024
Q2 = October, November, & December of 2024
Q3 = January, February, & March of 2025
Q4 = April, May, & June of 2025
Conclusion
Q1 refers to the first Quarter of the year. This Quarter includes January, February, & March if the company/business follows a calendar year. On the other hand, it can be different in the case of the fiscal year.
Q1, Q2, Q3, & Q4 concepts are used in financial reporting, financial analysis, budgeting, and other finance and accounting domains.
