Last-Twelve-Months

Written by Fmi.Online Friday January 6, 2023
Last twelve months (LTM) refers to the trailing 12-month period with respect to financial statement analysis, but it does not necessarily indicate the end of a company’s fiscal year.

Explanation :

 LTM may also be referred to as trailing twelve months (TTM). Hence, when investors see the trailing P/E on a financial report, it means that the price to earnings ratio represents the past 12-month period. Although LTM is a relatively short time frame to determine the value of a firm with respect to certain valuation metrics, it is useful as it shows how the company performed recently and what are the trends of growth, if any. Analysts use LTM to estimate a firm’s operating performance YTD. LTM is especially useful in the case of an acquisition.

In a nutshell :

  • Trailing 12 months (TTM) is the term for the data from the past 12 consecutive months used for reporting financial figures.
  •  A company's trailing 12 months represent its financial performance for a 12-month period; it does not typically represent a fiscal-year ending period.
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