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Last Twelve Months (LTM)

What does 'Last Twelve Months - LTM' mean

Last twelve months (LTM), also commonly designated as trailing twelve months (TTM), indicates the time frame of the immediately preceding 12 months in reference to a financial metric used to evaluate a company's performance, such as revenues or debt to equity (D/E). Although a 12-month period is a relatively short time span for examining a given equity evaluation measure, it is considered useful because of the fact that it indicates a company's most recent performance, and therefore may be indicative of the company's current trend. The terms "last twelve months" or "trailing twelve months" frequently appear in a company's earnings reports or other financial statements.

Explaining 'Last Twelve Months - LTM'

While in some respects, 12 months of data is less than adequate for investment evaluations, it is a long enough span of time to level out seasonal factors, possible short-term price fluctuations and market swings. Data from the last twelve months is often used to evaluate retail companies. Last twelve month figures are more current than annual financial statement figures and avoid potentially misleading short-term measures, such as quarterly figures.

Calculating Last Twelve Months Data

An investor or analyst can manually calculate last twelve month figures by using a company's 10-K and 10-Q SEC filings. The calculation is done by adding the year-to-date (YTD) figure to the company's most recent fiscal year figure, and then subtracting from that total the figure for the prior year to date, which can be found in the 10-Q filing.

Using Last Twelve Months Metrics

In addition to being used to gauge the recent trend of a given company's performance, last twelve month financial metrics are also frequently used to compare the relative performance of similar companies within an industry or sector. Financial metrics commonly considered by looking at last twelve month figures include a company's price-earnings (P/E) ratio and earnings per share (EPS). In reviewing stocks, mutual funds and exchange-traded funds (ETFs), the dividend yield figure for the last twelve months is often compared with the SEC yield figure, which reflects only the yield of the most recently paid dividend.


Further Reading


MINISTRY OF FINANCE AND ECONOMIC DEVELOP-MENT
stg-wedocs.unep.org [PDF]
… The last column of the table displays the t-statistics for testing equal means … In contrast to previous studies that rely solely on 49 Reproduced with permission of the … B Description of Terms Gross Profit Margin – Gross Profit Margin equals (Latest 12-month (LTM) Revenue minus …

The flipped classroom: a course redesign to foster learning and engagement in a health professions schoolThe flipped classroom: a course redesign to foster learning and engagement in a health professions school
journals.lww.com [PDF]
… The last column of the table displays the t-statistics for testing equal means … In contrast to previous studies that rely solely on 49 Reproduced with permission of the … B Description of Terms Gross Profit Margin – Gross Profit Margin equals (Latest 12-month (LTM) Revenue minus …

An investment-led approach to analysing the hydrogen energy economy in the UKAn investment-led approach to analysing the hydrogen energy economy in the UK
www.sciencedirect.com [PDF]
… The last column of the table displays the t-statistics for testing equal means … In contrast to previous studies that rely solely on 49 Reproduced with permission of the … B Description of Terms Gross Profit Margin – Gross Profit Margin equals (Latest 12-month (LTM) Revenue minus …

Severe asthma and eligibility for biologics in a Brazilian cohortSevere asthma and eligibility for biologics in a Brazilian cohort
www.tandfonline.com [PDF]
… The last column of the table displays the t-statistics for testing equal means … In contrast to previous studies that rely solely on 49 Reproduced with permission of the … B Description of Terms Gross Profit Margin – Gross Profit Margin equals (Latest 12-month (LTM) Revenue minus …

Mergers and restructuring in the world oil industryMergers and restructuring in the world oil industry
www.sciencedirect.com [PDF]
… The last column of the table displays the t-statistics for testing equal means … In contrast to previous studies that rely solely on 49 Reproduced with permission of the … B Description of Terms Gross Profit Margin – Gross Profit Margin equals (Latest 12-month (LTM) Revenue minus …


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