Quarter Over Quarter - Q/Q

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DEFINITION of 'Quarter Over Quarter - Q/Q'

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.

BREAKING DOWN 'Quarter Over Quarter - Q/Q'

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.

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