what is ttm in finance

what is ttm in finance

1 year ago 71
Nature

In finance, TTM stands for "trailing twelve months" and refers to figures that represent a companys performance over the past year. TTM is a term used to describe the past 12 consecutive months of a companys performance data, thats used for reporting financial figures. It is a backward-looking metric that captures the financial performance of a company in its latest four reporting quarters. TTM figures are produced for a variety of metrics including earnings, EPS, P/E, and yield. By consistently evaluating trailing 12-month numbers, company financials can be evaluated both internally and externally regardless of when the fiscal year-end is. TTM allows for a like comparison of a companys performance trajectory that smooths away inconsistencies. TTM is a highly flexible tool that can be applied to balance sheet figures, profit-and-loss statements, revenue, and cash flow charts.

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