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

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

    The real or expected period of time during which an investment ...
  5. Year Over Year - YOY

    A method of evaluating two or more measured events to compare ...
  6. Member Month

    The number of individuals participating in an insurance plan ...
Related Articles
  1. Markets

    7 Stocks That Could Surprise in 2016

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

    Medtronic Makes a $458 Million Acquisition (MDT)

    The largest pure-play medical devices maker just got larger. Medtronic (NYSE: MDT) announced this week that it signed a definitive agreement to acquire privately held Twelve, a replacement heart-valve ...
  3. Investing

    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.
  4. Investing

    How Corporations Are Misleading You

    I look over hundreds of financial statements week in and week out, and I've come to one important conclusion: There's a lot of unintentional financial trickery that goes on when corporations ...
  5. Markets

    4 Retail Stocks That Continue to Appreciate (DG)

    Finding winners in retail isn't easy these days, but these four stocks continue to appreciate.
  6. ETFs & Mutual Funds

    The 10 Best Income-generating International ETFs

    A look at ten income-generating international ETFs.
  7. Investing

    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 ...
  8. Markets

    How to Calculate Trailing 12 Months Income

    Trailing 12 months refers to the most recently completed one-year period of a company’s financial performance.
  9. ETFs & Mutual Funds

    Top Healthcare Stocks Rallying Under Obamacare

    The healthcare industry, bullish via Obamacare, has plenty of stocks with major upside.
  10. Investing

    The Financial Characteristics Of A Successful Company

    There are many factors that contribute to a profitable business. Find out what they are here.
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. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  2. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  3. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  4. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
  5. Russell 3000 Index

    A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
  6. Enterprise Value (EV)

    A measure of a company's value, often used as an alternative to straightforward market capitalization. Enterprise value is ...
Trading Center