The Excel worksheet is a trustworthy and versatile tool for data analysis that can deal with numerous types of data. One of its standout features is the QUARTERLY function, which enables users to extract the quarter from a date value. This can help users to analyse data depending upon quarterly periods. The QUARTERLY function can be used in conjunction with other Excel functions in order to perform more critical data analysis tasks. For instance, you could use the QUARTERLY function to calculate quarterly sales totals, or to track quarterly progress towards a goal. In this step-by-step guide, we will learn everything about the QUARTERLY function, including its importance, syntax, errors, tricks, and applications with Excel’s other formulas.
1. What is the quarterly formula and its basic syntax in Excel?
The QUARTERLY function is a helpful way to extract the quarter from a date in Excel. It can be used for data analysis that requires quarter-based breakdowns. This function divides the total month number of the date by 3 and rounds it up to the nearest whole number. It will return a number between 1 and 4. Which signifies the quarter of the year. For instance, the date May 31, 2023 is in the second quarter of the year. Therefore, the QUARTERLY function will return the number 2 (means second quarter). The QUARTERLY function removes the requirements of manual calculations of the quarter for each date, which can be time taking and prone to errors. This feature makes it a valued tool for individuals and businesses that need to analyse data on a quarterly basis.
Methods & syntax
There is no built-in function in Excel that can do this. However, two easy methods return the quarter for a given date.
Method 1
The first basic method to use of QUARTERLY function is as under:
=ROUNDUP (MONTH (date_value) / 3,0)
Here, date_value refers to a direct date value or the address of the cell where a date value resides.
In above syntax, two basic functions are used: ROUNDUP and MONTH.
The MONTH formula returns the month number in the specified date.
The ROUNDUP(x,0) always rounds x up to the nearest integer.
Therefore, 3 rounding up to the nearest whole number ultimately divides the month number in the date, effectively assigning each date to its respective quarter. For example, if the date is February 17, 2017, the formula will return:
=ROUNDUP (MONTH (2/17/2017) / 3,0)
=ROUNDUP (2 / 3,0)
=ROUNDUP (0.66667,0)
=1
According to this example, February 17 is in the first quarter of the calendar year. Likewise, when the date is May 25, 2022, the formula will be as under:
=ROUNDUP (MONTH (5/25/2022) / 3,0)
=ROUNDUP (5 / 3,0)
=ROUNDUP (1.6667,0)
=2
Method 2
The above-mentioned formula supposes that the monthly quarters are based on the calendar year. Which starts in January and ends in December. When you require calculating the quarter number based on a different fiscal year that starts in another month, you will need to adjust the formula consequently. Another way to do that is to use the CHOOSE function other than the ROUNDUP function in Excel. The syntax for the second method of QUARTERLY function is as under:
=CHOOSE (MONTH (date_value),1,1,1,2,2,2,3,3,3,4,4,4)
The CHOOSE function yields a value from a list of values depending on an index number. Everyone can change the order of numbers or the text strings after the formula of MONTH.
Example
Suppose that you want to calculate the quarter number that is based on a fiscal year that begins in April, you can use this formula:
=CHOOSE (MONTH (date),"Q4 “, “Q4 “, “Q4 “, “Q1 “, “Q1 “, “Q1 “, “Q2 “, “Q2 “, “Q2 “, “Q3 “, “Q3 “, “Q3")
This formula deals by assigning each month number to a parallel quarter value in the list. For example, the formula will return the values as in image below:
=CHOOSE(MONTH(B2),"Q1","Q1","Q1","Q2","Q2","Q2","Q3","Q3","Q3","Q4","Q4","Q4")
Where B2 refers to the list of dates.
You can change the list of values in the CHOOSE function to grab any fiscal year that starts in any month. Just confirm that the list has 12 values and they are arranged in the correct order.
2. How To Use The Excel Quarterly Formula? (With Example)
Using the QUARTERLY function in Excel is straightforward. Follow these steps to master its implementation:
Step 1. Open your Excel worksheet
Launch Excel and open the worksheet where you intend to use the QUARTERLY function.
Step 2. Select a cell
Choose the cell where you want the result of the QUARTERLY function to appear.
Step 3. Enter the function
Type the following formula in the selected cell:
=QUARTERLY(date)
Replace 'date' with the actual cell reference that contains the date you want to extract the quarter from.
Step 4. Press Enter
After entering the formula, press the Enter key. The cell will display the quarter corresponding to the date you specified.
Example:
Let's say you have a date in cell A1, and you want to extract the quarter from it. You would use the following formula:
=QUARTERLY(A1)
Upon pressing Enter, the cell will display the quarter number.
Some Tips & Tricks about Using QUARTERLY Function in Excel
To maximise the utility of the QUARTERLY function, consider these tips:
Combining with other functions
The QUARTERLY function can seamlessly integrate with other functions. For instance, combine it with the SUMIF function to calculate quarterly totals.
Creating PivotTables
Utilise pivot tables to aggregate and visualise quarterly data. Pivot tables offer dynamic analysis capabilities and allow for on-the-fly adjustments.
Data validation
Before applying the QUARTERLY function, validate your data for consistency and accuracy. This minimises errors in your analysis.
Formatting
Employ consistent date formatting for your dataset. This ensures that the QUARTERLY function accurately recognizes the dates.
Conditional formatting
Apply conditional formatting to highlight specific quarters or trends in your dataset. This adds a visual layer to your analysis.
Common Mistakes to Watch Out for When Using QUARTERLY Function
There are a few common mistakes that everyone needs to keep in mind, while using this function. Here are some of them:
1. Gregorian calendar
The QUARTER function will only work with dates that are in the Gregorian calendar. If you are working with dates in a different calendar, you will need to use a different method for calculating the quarter
2. The month function
The MONTH function will return a number from 1 to 12, regardless of the date format that is used. If you are using a different date format, you will need to adjust your formula accordingly.
3. Incorrect date format
The QUARTERLY function works with proper date formats. Ensure that the cell containing the date is formatted as a date, or the function may return an error.
4. Non-Numeric result
The QUARTERLY function returns a numeric value corresponding to the quarter. If the cell format is not set to "General" or "Number," the result might appear as hash symbols (####).
5. Invalid date
If the date in the specified cell is not recognized as a valid date, the function will return an error. Double-check the date's accuracy and format.
3. FAQs about Excel Quarterly Formula
Q.1 What challenges may arise when working with quarterly data in Excel?
Challenges with quarterly data in Excel can include handling date formats, dealing with missing or inconsistent data, and ensuring accurate calculations that align with specific fiscal or calendar quarters.
Q.2 How do I deal with missing data points for a particular quarter?
When dealing with missing data points for a quarter, you can either omit the quarter from your analysis or use zero or an appropriate placeholder value to represent missing data. Depending on your analysis requirements, you may choose different approaches.
Q.3 Are there any Excel functions specifically designed for quarterly calculations?
Excel does not have a specific function solely for quarterly calculations, but functions like SUMIFS, AVERAGEIFS, and DATE can be combined effectively to perform quarterly analysis and calculations. With the right formulas and data organisation, you can achieve accurate quarterly summaries.
4. Best Alternative – WPS Office
For those seeking to edit Excel files without purchasing the Microsoft Office suite, there are free alternatives available. WPS Office is a suite that provides powerful editing capabilities. Additionally, it offers Excel worksheet, PowerPoint presentation, word processor, as well as PDF editor that enables you to edit files efficiently.
5. Summary
The QUARTERLY function in Excel is a powerful tool for data analysis, especially when dealing with time-based datasets. It allows you to quickly and accurately extract quarters from dates, which can help you perform strategic analysis and make informed decisions. This article has shown you how to use the QUARTERLY function in Excel, with a detailed step-by-step guide.
You have also learned how to avoid common errors, how to combine the QUARTERLY function with other functions, and how to use pivot tables for advanced analysis. These tips will help you maximise the benefits of the QUARTERLY function, and transform your data into valuable insights.
