Quarter to Date (QTD)

Definition

QTD is short for “quarter to date.” It refers to the period starting from the first day of the current quarter until now. QTD is used to compare business performance across quarters, either prior quarter or the same quarter of the previous year. Note - In financial context, a quarter means a three-month period during a fiscal year.

Example

Since there are 12 months in a year, a business's financial performance is divided into four quarters. For example, the 1st quarter is Q1, the second quarter is Q2, and so on. To estimate its business performance thus far during a given quarter, a company's management may look at data from the start of the quarter to the latest date.For instance, if a company wants to achieve revenues of $5 million for a quarter but it is still a month to go before the quarter ends, the management may check the quarter-to-date revenues. This will allow them to determine if the financial performance is on track to achieve the $5 million goal.

Why it matters

QTD financial information can help management in taking timely action and decisions to ensure that the business stays on course and the company is on track to achieve the overall business goals. If any adjustments are required to achieve a goal, the course can be adjusted after looking at QTD figures.

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