Quarter Over Quarter - Q/Q

A A A

DEFINITION

A measure of an investment or company's growth from one quarter to the next. Quarter-over-quarter growth is most commonly used to compare a company's growth in profits or revenue, though it can also be used to describe changes in money supply, GDP or other economic measurements. Q/Q is a rate of change calculation.

INVESTOPEDIA EXPLAINS

For example, suppose that a company reports Q1 earnings of $1 million and Q2 earnings of $1.25 million. Q/Q earnings growth would be ($1,250,000 - $1,000,000)/$1,000,000 = 0.25, or 25%. This demonstrates that the company's earnings have grown, but only the last two quarters have been examined. An investor would want to look at several other quarters to see if this is a trend or just a seasonal or temporary adjustment.




RELATED TERMS
  1. Most Recent Quarter - MRQ

    A time notation denoting the measurement of a performance metric (such as earnings) ...
  2. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting ...
  3. Quarterly Earnings Report

    A quarterly filing made by public companies to report their performance. Included ...
  4. Quarter To Date - QTD

    A time interval that captures all relevant company activity that occurred between ...
  5. Earnings Per Share - EPS

    The portion of a company's profit allocated to each outstanding share of common ...
  6. Return On Investment - ROI

    A performance measure used to evaluate the efficiency of an investment or to ...
  7. Working Capital

    This ratio indicates whether a company has enough short term assets to cover ...
  8. On-Balance Volume (OBV)

    A momentum indicator that uses volume flow to predict changes in the stock price. ...
  9. StockCharts Technical Rank (SCTR)

    A technical ranking for stocks within a group, created by John Murphy for the ...
  10. Net Present Value - NPV

    The difference between the present value of cash inflows and the present value ...
Related Articles
  1. Everything Investors Need To Know About ...
    Insurance

    Everything Investors Need To Know About ...

  2. The Flow Of Company Information
    Investing Basics

    The Flow Of Company Information

  3. Conference Call Basics
    Professionals

    Conference Call Basics

  4. Earnings Forecasts: A Primer
    Economics

    Earnings Forecasts: A Primer

  5. Strategies For Quarterly Earnings Season
    Investing

    Strategies For Quarterly Earnings Season

  6. Great Company Or Growing Industry?
    Markets

    Great Company Or Growing Industry?

  7. Understanding Leveraged Buyouts
    Fundamental Analysis

    Understanding Leveraged Buyouts

  8. What are some common traits of undervalued ...
    Investing Basics

    What are some common traits of undervalued ...

  9. What are the best indicators for evaluating ...
    Active Trading Fundamentals

    What are the best indicators for evaluating ...

  10. Warren Buffett's Bear Market Maneuvers
    Insurance

    Warren Buffett's Bear Market Maneuvers

comments powered by Disqus
Hot Definitions
  1. Quanto Swap

    A swap with varying combinations of interest rate, currency and equity swap features, where payments are based on the movement of two different countries' interest rates. This is also referred to as a differential or "diff" swap.
  2. Genuine Progress Indicator - GPI

    A metric used to measure the economic growth of a country. It is often considered as a replacement to the more well known gross domestic product (GDP) economic indicator. The GPI indicator takes everything the GDP uses into account, but also adds other figures that represent the cost of the negative effects related to economic activity (such as the cost of crime, cost of ozone depletion and cost of resource depletion, among others).
  3. Accelerated Share Repurchase - ASR

    A specific method by which corporations can repurchase outstanding shares of their stock. The accelerated share repurchase (ASR) is usually accomplished by the corporation purchasing shares of its stock from an investment bank. The investment bank borrows the shares from clients or share lenders and sells them to the company.
  4. Microeconomic Pricing Model

    A model of the way prices are set within a market for a given good. According to this model, prices are set based on the balance of supply and demand in the market. In general, profit incentives are said to resemble an "invisible hand" that guides competing participants to an equilibrium price. The demand curve in this model is determined by consumers attempting to maximize their utility, given their budget.
  5. Centralized Market

    A financial market structure that consists of having all orders routed to one central exchange with no other competing market. The quoted prices of the various securities listed on the exchange represent the only price that is available to investors seeking to buy or sell the specific asset.
  6. Balanced Investment Strategy

    A portfolio allocation and management method aimed at balancing risk and return. Such portfolios are generally divided equally between equities and fixed-income securities.
Trading Center