Trailing 12 Months (TTM)

Trailing 12 Months (TTM) refers to a measurement of a company’s financial performance over the last 12 months, providing a dynamic view of its current financial health. TTM is often used in financial analysis to smooth out seasonal variations and gives investors a more up-to-date view compared to Annual Reports. For instance, if a company’s total Revenue for the last four quarters is $4 million, its TTM Revenue is also $4 million. TTM can be applied in various cases, such as calculating Earnings Per Share (EPS) or evaluating EBITDA, allowing investors to delve into recent trends in performance.