Quarterly report

Definition

A quarterly report is a financial document made by a publicly traded company every quarter, typically at the end of each fiscal quarter.

What is a quarterly report?

It provides detailed information about the company’s financial performance, operational activities, and overall business conditions during the three-month period covered by the report. Quarterly reports are a key communication tool between a company and its investors, analysts, regulators, and other stakeholders.

The financial statements included in a quarterly report typically consist of:

1. Income statement (profit and loss statement): Provides information on revenues, expenses, and profits or losses during the quarter.
2. Balance sheet: Summarises the company’s assets, liabilities, and shareholders’ equity at the end of the quarter.
3. Cash flow statement: Details the company’s cash inflows and outflows from operating, investing, and financing activities.

Companies often include operational highlights and key performance indicators (KPIs) to provide additional context on business activities, market trends, product launches, and other relevant developments.

Some companies use the quarterly report to provide guidance or outlook for future quarters. This may include projections related to financial performance, market conditions, or strategic initiatives.

The report typically includes a discussion of risks and uncertainties that could impact the company’s performance. This helps investors and stakeholders understand the potential challenges and strategies.

Investors often compare a company’s current quarterly results with those of previous quarters and with analysts’ expectations. Analysing trends over multiple quarters can reveal insights into a company’s overall performance.