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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Cached on May 24, 2012, 12:35 pm