Quarterly Financial Statements are sets of financial reports prepared by companies at the end of each quarter within their financial year. These statements include an Income Statement, Balance Sheet, Cash Flow Statement, and sometimes additional detailed notes.
Quarterly financial statements provide stakeholders with insights into the company's performance over the most recent three-month period. These statements are crucial for identifying trends and making timely financial decisions. Companies typically prepare these statements for each quarter: Q1, Q2, Q3, and Q4. For example, if a company has a financial year that corresponds with the calendar year, the Q1 statements would cover January to March.
These financial reports are essential tools for both internal management for operational planning and external stakeholders, such as investors, for monitoring company progress. An example sentence would be, "The board reviews the quarterly financial statements to track the company's profitability trends."