Trailing Twelve Months (TTM): Definition, Calculation, and Examples

What is Trailing Twelve Months (TTM)?

Trailing twelve months (TTM), also called last twelve months (LTM), provides a current and seasonally adjusted view of a company’s financial health. Financial analysts and investors use TTM metrics to gain a rolling view of reported financial results, such as revenue, EBITDA, and EPS. 

How to Calculate TTM Revenue

Analysts calculate a trailing twelve months figure using the TTM formula.

TTM Formula

TTM Financial Metric = Latest Fiscal Year Metric + Current YTD Metric – Prior-Year YTD Metric

Where:

• The Latest Fiscal Year Metric is found in the company’s financial statements in their most recent 10-K filing. For example, if you want to calculate TTM revenue, EBITDA, or earnings, you can pull the necessary figures from the income statement.
• The Current YTD Metric is found in the company’s most recent 10-Q filings.
• The Prior-Year YTD Metric represents the overlapping months from the previous year that must be subtracted to prevent double-counting.

TTM Revenue Calculation Example

Suppose a fictional company, Acme Manufacturing, has just released its Q1 2025 results. Acme’s fiscal year runs from January through December. 

How would you calculate TTM revenue through the end of Q1 using the TTM formula?

Step 1: Gather the inputs.

From Acme’s 2024 10-K report and its Q1 2025 10-Q filings, you locate the following revenue data on the income statements:

• Latest fiscal year revenue (2024): $120 million
• Current YTD revenue (Q1 2025, Jan–Mar): $35 million
• Prior-year YTD revenue (Q1 2024, Jan–Mar): $30 million

Step 2: Perform the calculation.

Use the inputs from step 1 with the TTM formula:

TTM Revenue = Latest Fiscal Year Revenue + Current YTD Revenue – Prior-Year YTD Revenue

• TTM Revenue = $120 million + $35 million – $30 million
• TTM Revenue = $125 million

Step 3: Interpret the result

The TTM revenue of $125 million represents Acme’s revenue for the most recent twelve months ending March 2025. This calculation replaces Q1 2024 with Q1 2025, combining the newest quarter with the remaining three quarters (Q2-Q4) from 2024. Now you have a current, rolling twelve-month view of Acme’s revenue.

TTM vs. NTM: What’s the Difference?

TTM shows a company’s actual performance over the most recent 12 months, while NTM (next twelve months) estimates a company’s expected financial performance in the future. 

Analysts look at both measures to understand how a company has performed recently and how it may perform in the near future. The comparison below summarizes the key differences between TTM and NTM revenue.

TTM vs. NTM Revenue Comparison

Why TTM Metrics Matter to Analysts and Investors

TTM data plays an important role in investment analysis and valuation by providing a current, consistent view of the most recent 12 months of a company’s financial results. 

Analysts calculate TTM financial metrics with each new quarter to keep their data current. Unlike quarterly results that can show seasonal swings or one-time events, TTM metrics provides a more consistent view of business performance. This makes TTM metrics essential for valuation work, peer comparisons, and investment analysis.

How Investors and Analysts Use TTM Financial Metrics

• Company comparisons: One company’s fiscal year might end in March while another’s ends in December. Analysts use TTM revenue, EBITDA, and EPS to standardize each company’s most recent twelve months of financial results for easier comparison.
• Valuation multiples: TTM data is used as the basis for calculating important valuation ratios like price-to-earnings (P/E) and enterprise value to EBITDA (EV/EBITDA). Using TTM figures ensures the valuation reflects the most recent performance rather than outdated annual results.
• Trend analysis: TTM smooths out quarterly volatility and seasonal patterns, making it easier to spot genuine financial trends versus temporary fluctuations.

The Bottom Line: Trailing Twelve Months (TTM)

TTM gives analysts and investors a practical tool for evaluating a company’s financial performance using its most recent twelve months of performance. Since TTM updates with each new quarter, it remains more current than annual figures and more stable than quarterly snapshots, making it essential for valuation work, peer comparisons, and investment analysis.

Frequently Asked Questions

What does TTM mean in finance?

TTM in finance stands for trailing twelve months, which refers to the most recent twelve months of a company’s financial results. Analysts use TTM data to review revenue, profit, or cash flow based on the previous four quarters of reported performance.

How is TTM calculated?

A TTM financial metric is calculated using the TTM formula: TTM Financial Metric = Latest Fiscal Year Metric + Current YTD Metric – Prior-Year YTD Metric. This formula works for calculating a company’s trailing twelve months of financial results like revenue, EBITDA, and earnings per share (EPS).

When should I use TTM instead of annual results?

Use TTM when you need current financial performance that’s more up-to-date than the most recent fiscal-year 10-K report. TTM is especially useful when a company’s fiscal year ended several months ago, or when comparing companies with different fiscal year-ends.

Additional Resources

Fiscal Year (FY)

Last 12 Months Revenue

Analyzing Financial Statements: Key Metrics and Methods

See all Valuation resources