Rhyme or reason for this trend?
One would think the public has more spending power or willing to spend due to the holidays (Q4).
Or due to more employees on vacation leaves etc. the rate of production slows down/not enough service staff?
In: Economics
Quarters in business don’t necessarily line up with the calendar. Businesses can chose what month is their year end.
Year end is the busiest time for corporate Accounting. The companies administration has a ton of reporting and auditing to do, and this is when companies are notorious for not wanting to spend money unnecessarily to get those few extra profit dollars on the books.
Corporations deliberately chose a year end date that is not in their busy season for that reason.
If you are a retail chain for example, you don’t want year end to be Dec 31st because Christmas is the busiest time of the year.
So making your Q4 the least profitable quarter is practical choice to make it easier for the team.
A lot of corporations also refuse to allow vacation and leave to accumulate, so managers have to force their team to take all their remaining leave at the last minute making teams less productive.
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