How to Read Quarterly Results

Momentum and seasonality.

Quarterly results are the P&L for a three-month period. Arriving four times a year, they're the fastest way to see if a business is speeding up or slowing down. Year-on-year (YoY) This quarter vs the same quarter last year. Best for seasonal businesses. Quarter-on-quarter (QoQ) This quarter vs the previous one. Shows short-term momentum. Rs 30 this quarter vs Rs 25 a year ago. YoY growth = (30 − 25) ÷ 25 × 100 = 20%. Many businesses are seasonal. Comparing to the same quarter a year earlier cancels seasonality, giving a cleaner read on real growth. Early acceleration/slowdown signal YoY removes seasonal noise Frequent updates One quarter can be lumpy QoQ misleads for seasonal firms Encourages overreaction

Part of Learn NEPSE Investing, a free course on reading Nepali company accounts and charts. Section: The Statements.