Trailing

AAA

DEFINITION of 'Trailing'

The most recent time period, often used to describe the time that a particular set of data is referring to. Trailing is used to describe a past statistic, such as same-store sales, but can also be used to describe a technique, such as a trailing stop order. Most often you will hear the term "trailing 12 months," "trailing three months" or "trailing six months."

INVESTOPEDIA EXPLAINS 'Trailing'

The term may also modify a reported metric. For example, the earnings in a trailing price-to-earnings ratio refers to the past earnings per share over a certain period - usually 12 months. Trailing 12 months is denoted by the acronym "TTM."

RELATED TERMS
  1. Earnings Per Share - EPS

    The portion of a company's profit allocated to each outstanding ...
  2. Price-Earnings Ratio - P/E Ratio

    A valuation ratio of a company's current share price compared ...
  3. Earnings

    The amount of profit that a company produces during a specific ...
  4. Cash Earnings Per Share - Cash ...

    A measure of financial performance that looks at the cash flow ...
  5. Trailing Twelve Months - TTM

    The timeframe of the past 12 months used for reporting financial ...
  6. Diluted Earnings Per Share - Diluted ...

    A performance metric used to gauge the quality of a company's ...
Related Articles
  1. When computing the PEG ratio for a stock, ...
    Investing

    When computing the PEG ratio for a stock, ...

  2. Target Prices: The Key To Sound Investing
    Economics

    Target Prices: The Key To Sound Investing

  3. What's the difference between absolute ...
    Investing

    What's the difference between absolute ...

  4. Understanding The P/E Ratio
    Markets

    Understanding The P/E Ratio

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center