Trailing Twelve Months

Key Highlights

• Trailing Twelve Months (TTM) refers to the data from the past 12 consecutive months used for financial analysis.

• TTM is like a financial time machine for investors, analysts, and anyone curious about a company’s recent track record.

What is Trailing Twelve Months (TTM)?

Trailing Twelve Months (TTM) refers to the data from the past 12 consecutive months used for financial analysis. It is a way to measure a company’s performance over the most recent one-year period, regardless of the fiscal year-end, providing a more current and relevant snapshot than annual or quarterly reports alone.

Why It Matters?

TTM is like a financial time machine for investors, analysts, and anyone curious about a company’s recent track record. It cuts through the noise of seasonal ups and downs- like holiday sales spikes or summer slumps- to show you what’s really going on with things like revenue, profits, or cash flow. It’s a tool to spot trends, gauge stability, and compare companies fairly, even if their accounting calendars don’t line up.

How It’s Calculated?

Think of TTM as adding up the last four chapters of a company’s financial story. For instance, if you’re looking at June 2025, you’d take the numbers from Q3 2024, Q4 2024, Q1 2025, and Q2 2025, and combine them.

Why It’s Useful?

• Fresh Insights: TTM gives you the latest scoop on how a company’s doing, not some outdated annual report.

• Eliminates Seasonality: It evens out seasonal quirks, so you’re not fooled by one great or terrible quarter.

• Comparability: Makes it easier to compare companies, even if their fiscal years end in different months.

• Trend Identification: Helps you see where a company’s headed- whether it’s climbing, coasting, or stumbling.