• @droans@lemmy.world
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    41 year ago

    13 period financial calendars don’t break down into quarters that easily. One reporting quarter will always have an extra period.

    5-4-4 creates even quarters except it requires either one extra day every year or one extra week every five to six years. It’s most beneficial for companies that either experience high seasonality or high consistency, such as retail and manufacturing.

    Most other companies just use calendar month since it’s simple, easy to determine, and allows for rather consistent year-over-year comparison.