TTM Calculator – Trailing Twelve Months
Calculate trailing twelve months (TTM) financial metrics to analyze company performance using the most recent 12 months of data. TTM provides a more current view than fiscal year data.
TTM Financial Metrics
Performance Analysis
TTM Benefits
Current Data: Most recent 12 months
Seasonal Adjustment: Smooths quarterly variations
Comparability: Consistent time period
Note: Better than annual data for analysis
Understanding Trailing Twelve Months (TTM)
Trailing Twelve Months (TTM) represents the most recent 12 consecutive months of financial data. TTM calculations provide a more current and relevant view of company performance compared to fiscal year data, which may be several months old.
What is TTM?
- Definition: Financial data from the most recent 12 months
- Alternative Names: LTM (Last Twelve Months), YTD (Year-to-Date)
- Purpose: Current view of company performance
- Usage: Valuation, analysis, and investment decisions
- Update Frequency: Changes with each new quarterly report
TTM vs. Fiscal Year Data
| Aspect | TTM Data | Fiscal Year Data |
|---|---|---|
| Timeliness | Most current | Up to 6 months old |
| Period Length | Always 12 months | Varies by company |
| Seasonal Effects | Smoothed out | May be seasonal |
| Comparability | Highly comparable | Less comparable |
Common TTM Metrics
- TTM Revenue: Total revenue over last 12 months
- TTM EPS: Earnings per share over last 12 months
- TTM P/E Ratio: Price to earnings using TTM EPS
- TTM EBITDA: Earnings before interest, taxes, depreciation, amortization
- TTM Free Cash Flow: Operating cash flow minus capital expenditures
- TTM ROE: Return on equity over last 12 months
- TTM Gross Margin: Gross profit as percentage of revenue
How to Calculate TTM
TTM calculations involve summing the most recent four quarters of data, or using the most recent fiscal year plus any subsequent quarters.
- Method 1: Sum most recent 4 quarters
- Method 2: Latest fiscal year + YTD data
- Quarterly Updates: Recalculated with each earnings release
- Consistency: Use same accounting methods
- Adjustments: May need to adjust for one-time items
Applications of TTM Data
- Stock Valuation: More accurate P/E and P/S ratios
- Investment Analysis: Current performance assessment
- Peer Comparison: Consistent comparison across companies
- Trend Analysis: Identify growth or decline patterns
- Financial Modeling: Base case assumptions
- Due Diligence: Comprehensive company review
TTM in Stock Screening
TTM metrics are essential for stock screening and fundamental analysis because they provide the most up-to-date picture of company performance.
- P/E Ratio: Price divided by TTM EPS
- P/S Ratio: Price divided by TTM sales per share
- EV/EBITDA: Enterprise value divided by TTM EBITDA
- PEG Ratio: P/E divided by TTM growth rate
- ROIC: Return on invested capital (TTM)
Limitations of TTM
- Seasonal Variations: May not reflect annual patterns
- One-time Events: Extraordinary items can distort
- Accounting Changes: Method changes affect comparability
- Short-term Focus: May miss long-term trends
- Update Frequency: Changes quarterly, not continuously
TTM vs. Forward Estimates
- TTM: Actual historical data (known)
- Forward Estimates: Future projections (estimates)
- Reliability: TTM is factual, forward is speculative
- Usage: TTM for current valuation, forward for growth
- Accuracy: TTM is more reliable than estimates
Tip: TTM data provides a more current and accurate picture of company performance than annual fiscal data. Use TTM metrics for valuation, peer comparison, and investment analysis to make more informed decisions based on the most recent financial information.