Last Twelve Months - LTM

What does 'Last Twelve Months - LTM' mean

Last twelve months (LTM) is a period of time commonly used to evaluate financial results such as a company's performance or investment returns. Twelve months is a relatively short time frame, but it is a period long enough to generate a meaningful set of data.

Also called trailing twelve months (TTM). This term is often found in a company's financial statements.

BREAKING DOWN 'Last Twelve Months - LTM'

A twelve-month period can provide a useful set of data for a number of reasons. For example, when evaluating the earnings of a retail company, data from one quarter would not provide an accurate picture of performance since retail companies do most of their business around the winter holidays. When evaluating an investment, a twelve-month period is sometimes long enough to smooth out the effects of short-term swings in the market, and give an idea of the investment's potential future direction.

RELATED TERMS
  1. Trailing Twelve Months - TTM

    The timeframe of the past 12 months used for reporting financial ...
  2. Successive Periods

    Periods of time that follow one another chronologically, and ...
  3. Break In Service

    The loss of use of the contribution or benefit plan of the corporation ...
  4. Trailing

    The most recent time period, often used to describe the time ...
  5. Holding Period

    The real or expected period of time during which an investment ...
  6. S-3 Filing

    The most simplified registration form. It can only be used by ...
Related Articles
  1. Investing News

    7 Stocks That Could Surprise in 2016

    Here are seven stocks that could be good additions to your portfolio in 2016.
  2. Investing Basics

    How to Evaluate Stock Performance

    Learn how to evaluate stock performance. While what you look for in a stock could be different from another person, the way you analyze performance is the same.
  3. Mutual Funds & ETFs

    The 10 Best Income-generating International ETFs

    A look at ten income-generating international ETFs.
  4. Professionals

    Analysis and Evaluation of Risk Exposure

    Analysis and Evaluation of Risk Exposure
  5. Forex

    Multiple Time Frames

    Using multiple time frame analysis can drastically improve the odds of making a successful trade.
  6. Personal Finance

    Top Healthcare Stocks Rallying Under Obamacare

    The healthcare industry, bullish via Obamacare, has plenty of stocks with major upside.
  7. Professionals

    Holding Period Return

    FINRA/NASAA Series 65 - Holding Period Return. This section explains holding period return and its calculation.
  8. Fundamental Analysis

    How Do I Calculate the Price-Earnings Ratio?

    If Apple is trading at $108.73 per share, and its trailing twelve months' EPS is $6.45, calculate the P/E ratio as...
  9. Professionals

    Introduction

    FINRA/NASAA Series 66: Section 2 Measuring Portfolio Returns. This section discusses different return measures: return on investment, holding period, annualized, risk free and total returns.
  10. Investing Basics

    What are Financial Statements?

    Financial statements are a picture of a company’s financial health for a given period of time at a given point in time. The statements provide a collection of data about a company’s financial ...
RELATED FAQS
  1. Why is the TTM (trailing twelve months) important in finance?

    Learn about trailing 12 month financial data, and find out how TTM controls seasonality for equity research, financial planning ... Read Answer >>
  2. Why would you use the TTM (trailing twelve months) rather than the data from the ...

    Learn why investors use trailing 12 months rather than the numbers from the last annual report. Learn what cannot be calculated ... Read Answer >>
  3. Stocks with high P/E ratios can be overpriced. Is a stock with a lower P/E always ...

    The short answer? No. The long answer? It depends.The price-to-earnings ratio (P/E ratio) is calculated as a stock's current ... Read Answer >>
  4. Why should I look at other aspects of the company, rather than just the bottom line?

    Understand the limitations of the bottom line figure on a company's income statement and why it is insufficient for evaluating ... Read Answer >>
  5. How should I analyze a company's financial statements?

    Discover how investors and analysts use a company’s financial statements to evaluate a company's financial health and investment ... Read Answer >>
  6. Why do shareholders need financial statements?

    Discover the importance of a company's financial statements for stock shareholders in evaluating their equity investment ... Read Answer >>
Hot Definitions
  1. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  2. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  3. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  4. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  5. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  6. Society for Worldwide Interbank Financial Telecommunications ...

    A member-owned cooperative that provides safe and secure financial transactions for its members. Established in 1973, the ...
Trading Center