What is a Calendar Year?

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

How Does a Calendar Year Work?

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 some don't. For example, Company ABC might start its fiscal year on October 1 and end on September 30.

Why Does a Calendar Year Matter?

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

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Paul Tracy
Paul Tracy

Paul has been a respected figure in the financial markets for more than two decades. Prior to starting InvestingAnswers, Paul founded and managed one of the most influential investment research firms in America, with more than 3 million monthly readers.

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