TTM Meaning and
Definition
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TTM is an acronym that stands for Trailing Twelve Months, which is a financial metric used to analyze a company's performance over the past twelve consecutive months. It is commonly used in business and finance to evaluate a company's financial health and assess its growth potential.
The TTM calculation involves summing up the company's financial data, such as revenue, earnings, or cash flow, over the most recent twelve-month period. This data is typically compared to previous TTM periods or industry benchmarks to provide insight into the company's trends and performance.
The TTM metric is favored by investors and analysts as it helps to eliminate seasonality and short-term fluctuations that may not accurately reflect the company's true financial standing. By considering a longer timeframe, TTM provides a more comprehensive picture of the company's performance and potential future earnings.
The TTM figure is useful in various financial ratios and calculations, such as the price-to-earnings ratio (P/E ratio) or the price-to-sales ratio (P/S ratio), which are commonly used to value companies and make investment decisions.
Overall, TTM provides a standardized method to evaluate a company's financial performance over a rolling twelve-month period, allowing investors and analysts to make more informed decisions based on reliable and consistent data.
Common Misspellings for TTM
- yttm
- 6ttm
- t6tm
- 5ttm
- t5tm
- tt6m
- tt5m
- ttnm
- ttmn
- ttjm
- tttm
- t tm
- tt m
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