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Trailing Twelve Months (TTM)

Step-by-Step Guide to Understanding Trailing Twelve Months (TTM)

Last Updated February 20, 2024

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Trailing Twelve Months (TTM)

How to Calculate TTM Revenue?

The trailing twelve months (TTM) refers to a company’s financial performance in the most recent 12-month period.

TTM stands for “trailing twelve months” and is a backward-looking metric that captures the financial performance of a company in its last four reporting quarters.

In effect, a metric on a trailing twelve month basis, such as TTM revenue, is meant to show the current state of a company’s growth trajectory.

The process of adjusting a financial metric like revenue by adding the most recent period past the latest reported fiscal year and subsequently deducting the matching period is referred to as the “stub period”.

The required financial filings to perform such a calculation are the company’s latest 10-K, most recent quarterly filing(s), and the corresponding filings from the year prior.

To calculate a company’s TTM revenue, the following three steps can be followed.

  1. Compile Annual Report (10-K) and Latest Quarterly Reports (10-Q)
  2. Add the Year-to-Date (YTD) Data to the Fiscal Year Data
  3. Subtract the YTD Data from the Prior Year

Trailing Twelve Months Formula (TTM)

The formula for calculating a financial metric on a trailing twelve-month basis is as follows.

Trailing Twelve Months (TTM) = Latest Fiscal Year Data + YTD Data Prior YTD Data

For example, if two quarters have passed since the latest fiscal year, the quarterly data that we would deduct is the first two quarters from the prior year.

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Trailing Twelve Months Calculator (TTM)

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TTM Revenue Calculation Example

Suppose you’re tasked with calculating the revenue of a company on a trailing twelve-month basis.

In the recent quarters leading up to the end of fiscal year 2022, the company’s revenue has grown significantly.

Historical Revenue:

  • Q1, 2022 = $20 million
  • Q2, 2022 = $25 million
  • Q3, 2022 = $40 million
  • Q4, 2022 = $60 million

The company brought in $145 million in revenue to wrap up the fiscal year.

  • FY, 2022 = $145 million

In the most recent quarter, Q-1 of 2023, the company reported $75 million in quarterly revenue.

  • Q1, 2023 = $75 million

In order to calculate the TTM revenue of our company, we’ll start with our fiscal year 2022 revenue, add the Q1 2023 revenue, and subtract the Q4 2022 revenue.

  • TTM Revenue = FY-22 Revenue + Q1-23 Revenue – Q1-22 Revenue
  • TTM Revenue = $145 million + $75 million – $20 million = $200 million

Our company’s trailing twelve months (TTM) revenue amounts to $200 million, which reflects its financial performance and growth profile far more accurately than its fiscal year 2022 revenue of $145 million.

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