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Fresh Insights: TTM gives you the latest scoop on how a company’s doing, not some outdated annual report.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