Definition
Trailing Twelve Months (TTM) is a financial metric that measures a company's performance over the past 12 consecutive months. It is commonly used to smooth out seasonal fluctuations and give a more accurate reflection of financial trends.
Related Services
Financial reporting, accounting, and business analysis services frequently use TTM to assess company performance, profitability, and growth trends over a rolling 12-month period.
Problem and Application
TTM data provides a clearer picture of a company's ongoing performance compared to quarterly figures, but it requires accurate and timely data. Businesses must ensure that TTM calculations are up to date for valid financial decision-making.
Conclusion
TTM is a useful metric for tracking consistent business performance over time, offering a more holistic view of a company�s financial health and enabling better forecasting and strategic planning.
