Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Calendar Year

What it is:

The calendar year is the period between January 1 and December 31.

How it works (Example):

If Company XYZ starts its fiscal year on January 1 and ends its fiscal year on December 31, then Company XYZ's fiscal year is said to be on a calendar year basis. Many companies align their fiscal years with the calendar year, but many don't. For example, Company 123 might start its fiscal year on October 1 and end on September 30.

Why it Matters:

It is important for investors to know whether a company uses the calendar year or another period for their fiscal year, especially when comparing companies in seasonal industries.

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