What Is Trailing 12 Months (TTM)?

Trailing 12 months (TTM) is used to describe the past 12 consecutive months of a company's performance data when reporting financial figures. Using these figures provides a picture of a business's current financial performance rather than its annual filings and reports, which may contain outdated information. The 12 months do not necessarily coincide with a fiscal-year ending period. TTM figures are produced for various metrics, including earnings, 澳洲幸运5官方开奖结果体彩网:earnings per share (EPS), price-to-earnings (P/E) ratio, and yield.

Understanding Trailing 12 Months (TTM)

Analysts and investors use TTM to dissect a wide swath of financial data, such as balance sheet figures, 澳洲幸运5官方开奖结果体彩网:income statements, and cash flows. The methodology for calculating TTM data may diff♊er from one financial statement to the next.

In the 澳洲幸运5官方开奖结果体彩网:equity research space, some analysts report earnings quarterly, while others do so annually. But investors who seek daily information about stock prices and other current data may look to TTMs as more relevant measures because they're moreꦍ current and seasonally adjusted.

TTM figures can also be used to calculate financial ratios. For instance, the 澳洲幸运5官方开奖结果体彩网:price/earnings ratio is often called the P/E TTM. It is calculated as the 🅠stock's current price divided by a company's trailing 12-month EPS.

Much of 澳洲幸运5官方开奖结果体彩网:fundamental analysis invo꧒lves comparing a measurement against a like measurement from a prior te🤡rm to decipher how much growth was realized. For example, although a company that reports $1 billion in revenues is undoubtedly impressive, this achievement may be more notable if its revenues increased from $500 million to $1 billion within the last 12 months. This marked improvement provides a clear snapshot of the company's growth trajectory.

Where to Find Trailing 12-Month (TTM) Measures

The 12-month measure is typically reported on a company’s balance sheet, which is customarily updated every quarter to comply with 澳洲幸运5官方开奖结果体彩网:generally accepted accounting principles (GAAP♋). However, some analysts take an ജaverage of the first and last quarters.

Line items on the cash flow statement, such as 澳洲幸运5官方开奖结果体彩网:working capital, capital expenditures, and dividend payments, should be treated based on the feeding financial statement. For example, working capital is compiled from balance sheet line items, which are averaged. However, 澳洲幸运5官方开奖结果体彩网:depreciation is dedu🧜cted from income each quarter, so analꦜysts look at the last four quarters as reported on the income statement.

Trailing 12-Month (TTM) Revenue

TTM revenue is the revenue that a company earns over the trailing 12 months of business. This data is instrumental in determining whether or not a company has experienced meaningful top-line growth, and can pinpoint precisely where that growth is coming from. However, this figure is often overshadowed by a company’s profitability and capability to generate ꦰearnings before interest, tax, depreciation, and amortization ✱(EBITDA).

To calculate TTM revenue, simply add upꦍ the previous fo💖ur quarters of revenues:

TTM Revenue = current Q earnings + Q-1 earnings + Q-2 earnings + Q-3 earnings.

So, if XYZ Corp. generated $29.4 billion in re𝄹venue in Q1, $33.5 billion in Q4, $💖30 billion in Q3, and $21.9 billion in Q2, TTM revenue would be:

$29.4 + $33.5 + $30 + $21.9 = $87.8 billion

Trailing 12-Month (TTM) Yield

Used to analyze 澳洲幸运5官方开奖结果体彩网:mutual fund or 澳洲幸运5官方开奖结果体彩网:exchange-traded fund (ETF) performance, TTM yield is the percentage of income a portfolio has returned to investors over the last 12 months. This numꦫber is calculated by taking the weighted average of the yields of all holdings housed within a fund, whether they be stock, bonds, or other funds.

TTM yield can also refer to the 澳洲幸运5官方开奖结果体彩网:dividend yield for a stock paid out over the prior 12 months. For instance, if a company with $100 stock paid a $0.10 quarterly dividend o𒀰ver the past four quarters, the TTM yield would be 0.4% or (0.10 + 0.10 + 0.10 + 0.10) ÷ $100.

Trailing 12-Month (TTM) Price/Earning Ratio

TTM is also used to examine the 澳洲幸运5官方开奖结果体彩网:trailing P/E ratio of a company's stock. Trailing P/E is a relative valuation multiple based on the last 12 months of actual earnings. It is calculated by taking the current stock price and dividing it by the TTM EౠPS.

Trailing P/E Ratio = Current Share Price ÷ TTM EPS

Trailing P/E can be contrasted with the 澳洲幸运5官方开奖结果体彩网:forward P/E, which instead uses projected future earnings to calculat💃e the price-to-earnings ratio.

The Bottom Line

Trailing 12-month figures report metrics based on the last 12 months (or four quarters) to date on a rolling basis. In addition to measuring recent trends or annual performance, TTM financial metrics are frequently used to compare the relative performance of similar companies within an industry or sector. Financial metrics commonly considered by looking at the last twelve months of figures include a company's sales, stock returns, dividend yield, P/E ratio, and EPS.