TTM (Trailing Twelve Months)
A one-year figure obtained by adding up the four most recently completed quarters — a basis that smooths out quarter-to-quarter swings while staying up to date.
TTM = the sum of the most recent 4 quarters (e.g., TTM revenue = the last 4 quarters of revenue added together)
Even for the same metric, the value differs depending on whether it's on a "single-quarter basis" or a "TTM basis.
In plain terms
TTM means "adding up the four most recently completed quarters to view them as one year." If we're just past Q3, you add last year's Q4 plus this year's Q1, Q2, and Q3 to see the most recent year's results.
Why look at it this way? Company results swing from quarter to quarter (sales often pile up at year-end, for example). Looking at a single quarter means you get swayed by that season's effect. Bundling four quarters covers all four seasons, so the swings even out and you can see the most recent view of one full year's performance.
What it tells you
Companies usually report full-year results once a year. But if you wait for that, the numbers can be up to a year old. TTM is a "living one-year figure" that includes the most recent quarter, so it's fresher than the annual number.
When you calculate metrics like PER, ROE, or net margin using TTM, you get a steadier value that is less swayed by an unusual single quarter. (Most of the metrics in this dictionary and on our screens are on a TTM basis.)
Formula
TTM = the sum of the most recent 4 quarters (e.g., TTM revenue = the last 4 quarters of revenue added together)
What high or low means
Even for the same metric, the value differs depending on whether it's on a "single-quarter basis" or a "TTM basis." TTM bundles a full year and is more stable, but recent changes are reflected slowly, spread over four quarters.
So sharp changes (a sudden improvement or deterioration in results) show up a beat late in TTM. To see the latest trend, look at the quarterly path; to see the stable level, look at TTM alongside it.
TTM is simply the sum of quarterly results, so if the company acquired or sold a business during that year, the numbers may not connect smoothly. If an acquired company's revenue is folded in partway through, "growth on its own" and "growth from combining" get mixed together.
TTM is a "trailing (past)" figure that looks at the last four quarters. Markets move on the future, so it can differ from a "forward" figure that uses estimates for the period ahead (e.g., trailing PER vs. forward PER).
If a large one-off gain or loss lands in one quarter, it stays in TTM for four quarters. When that quarter drops out a year later, TTM can swing suddenly.
Metrics to read alongside
See it in real stocks
Search US stocks on Stocklore to see SEC-filing-based financial metrics alongside the sector benchmark.
This explanation is for information and reference only and is not a recommendation to buy or sell any security. Investment decisions and their consequences are your own.