TTM, or "Trailing Twelve Months," is a financial term that refers to a company's performance metrics calculated using data from the past twelve months. Rather than reflecting a firm's annual figures based only on fiscal year-end results, TTM offers a continuously updated snapshot that incorporates recent quarterly results to produce a rolling, real-time metric.
Investors and financial analysts regularly rely on TTM analysis because it provides the latest and most relevant insights into business performance. Unlike annual reports that might present outdated data, TTM accounts for recent developments to deliver timely insights. Common financial metrics measured using TTM include revenue, net income, earnings per share (EPS), and cash flows.
TTM figures allow investors or analysts to quickly assess performance trends, enabling more effective comparisons across competitors or market segments, regardless of differing fiscal calendars. Particularly useful for tracking performance in dynamic industries with ongoing seasonality or rapid business shifts, TTM ensures the most recent financial activities are reflected.
Overall, understanding and utilizing TTM data provides clearer, real-time context when analyzing a business's financial health and assessing investment opportunities or performance outcomes.
