LTM (Last Twelve Months)
The last twelve months is the time period of the preceding 12 months.
The last twelve months or LTM is the time period of the preceding 12 months. It is also commonly known as TTM or trailing twelve months. Often the LTM is used as a reference for the financial metrics such as debt to equity or revenues to calculate the organization’s performance.
However, it is often not considered useful to evaluate the organization’s performance over the last 12 months, as there are possible short-term fluctuations in the economy, prices, and market.
The company management often checks and reports on the last twelve months’ figures. Some consider it useful as it shows the business’s current standpoint and its recent performance. The last twelve months’ reports are often shown in the company’s reports under the financial statements and the earnings reports. While reviewing the figures from the trailing twelve months or the last twelve months, investors should not presume that the amounts agree with the recent fiscal year’s figures.
Dated as of June 30th or December 31st, the organizations’ financial statements are generally filed at the company’s fiscal year-end. The amount in the last twelve months refers to the 12-month ending period figures.