Stock FAQs

what is ttm in stock

by Mr. Marcelino Bogan IV Published 3 years ago Updated 2 years ago
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Trailing 12 months (TTM) is the term for the data from the past 12 consecutive months used for reporting financial figures. A company's trailing 12 months represents its financial performance for a 12-month period; it does not typically represent a fiscal-year ending period.

What does TTM stand for stock?

Tata Motors was established in 1945 as Tata Engineering and Locomotive Co. Ltd. to manufacture locomotives and other engineering products. It is India's largest automobile company, with standal...

What does TTM stand for in financials?

  • Q4 2018: $84.3 billion.
  • Q1 2019: $58 billion.
  • Q2 2019: $53.8 billion.
  • Q3 2019: $64 billion.
  • TTM revenue: $84.3 + $58 + $53.8 + $64 = $260.1 billion.

What does TTM stock mean?

What Does TTM Mean? The abbreviation TTM is a measure of data over a 12-month period in the past. ... investors can get a feel for how expensive or cheap a stock is compared to its earnings potential.

What does TTM stand for?

Trailing Twelve Months (TTM) TTM is a finance term that stands for trailing twelve months. It represents a company's financials in the last 12 consecutive months. Trailing twelve-month figures include the financial metrics for the last four quarters, which amounts to a full year of business performance.

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What is good TTM?

A high TTM receivable is good for your business as long as it doesn't cost you sales. A turnover that is very high might suggest that your credit terms are too tight and that you collect too aggressively.

What does TTM mean in stocks?

What Does TTM Mean? The abbreviation TTM is a measure of data over a 12-month period in the past. Typically a TTM period refers to the 12 months preceding the current month, or a 12-month period up to the firm's most recent earnings report or other financial disclosure.

Why is TTM important?

By using TTM, analysts can evaluate the most recent monthly or quarterly data rather than looking at older information that contains full fiscal or calendar year information. TTM charts are less useful for identifying short-term changes and more useful for forecasting.

How is TTM calculated?

How to calculate TTMFormula: TTM = Q (latest) + Q (1 quarter ago) + Q (2 quarters ago) + Q (3 quarters ago)Formula: TTM figure = Most recent quarter(s) + Last full year - Corresponding quarter(s) last year.Formula: PE Ratio = Stock Price / EPS (ttm).

What is TTM example?

Example. If a Company reports $1 million in quarterly revenue in 3/31/2000, a $10 million yearly revenue on 12/31/2000, and $4 million quarterly revenue in 3/31/2001, the trailing twelve months revenue is calculated as $13 million as follows.

What is TTM profit margin?

The TTM profit margin is the trailing 12 months of profit over total revenues for a company. The trailing 12 months' profit margin allows owners and investors to observe any recent profit trends. It is most useful when the TTM does not coincide with the fiscal year.

When should I stop TTM?

However, current professional organisations continue to recommend TTM of 33-36oC for at least 24 hours following cardiac arrest.

What is a good PE ratio?

So, what is a good PE ratio for a stock? A “good” P/E ratio isn't necessarily a high ratio or a low ratio on its own. The market average P/E ratio currently ranges from 20-25, so a higher PE above that could be considered bad, while a lower PE ratio could be considered better.

What is TTM dividend?

Trailing dividend yield gives the dividend percentage paid over a prior period, typically one year. A trailing twelve month dividend yield, denoted as "TTM", includes all dividends paid during the past year in order to calculate the dividend yield.

What is a good EPS?

"The EPS Rating is invaluable for separating the true leaders from the poorly managed, deficient and lackluster companies in today's tougher worldwide competition," O'Neil wrote. Stocks with an 80 or higher rating have the best chance of success.

How do you read a 12-month trailing?

In other words, if you are running your trailing 12 months reports in July 2020, your starting date will be July 1, 2019. Your ending date will be the last day of the month just completed — in this example, June 30, 2020.

What is price/sales TTM?

The typical 12-month period used for sales in the P/S ratio is generally the past four quarters (also called trailing 12 months or TTM), or the most recent or current fiscal year (FY). A P/S ratio that is based on forecast sales for the current year is called a forward P/S ratio.

What is a TTM?

The TTM format is a key tool for companies performing financial planning, since it incorporates the most recent financial data that’s available . TTM is especially useful in evaluating things like working capital, revenue growth and profit margins, which may fluctuate throughout the year depending on seasonal factors.

What is TTM data?

Think of TTM data as a 12-month ruler that companies and financial analysts use to measure recent performance—one that’s distinct from a company’s fiscal year, the current calendar year or a year-to-date (YTD) measure.

What is a TTM period?

Typically a TTM period refers to the 12 months preceding the current month, or a 12-month period up to the firm’s most recent earnings report or other financial disclosure.

What is TTM revenue?

TTM revenue. A company’s total revenues from the last 12-month period. For a bank, this would be interest income and other fees, while for a manufacturing or retail firm it could be net sales. A TTM revenue measure provides a more accurate picture of recent performance than the firm’s last annual or quarterly revenue report, which could be months old already.

What is trailing 12 months?

Trailing 12 months (TTM) is a way of looking at the performance of a public company or a security over the last 12 months. A TTM reading of a firm’s price-to-earnings ratio, earnings or revenue, for instance, gives investors and analysts a handy way of analyzing data that’s not tied to the calendar year or a company’s fiscal year.

What is TTM yield?

For a mutual fund or an exchange-traded fund ( ETF ), TTM yield is a measure of the percentage of income the security has returned to investors over the previous 12 months. For a fund, TTM yield is calculated by taking the weighted average of the yields that make up its portfolio of assets.

How is TTM calculated?

TTM figures are calculated using the most recent year-to-date (YTD) period, plus the last complete fiscal year minus the previous year’s year-to-date period. It’s important to use year-to-date, not just the latest quarter.

What does TTM mean in financials?

TTM financials are also a great way to get a full year’s worth of financial data without having to wait for the full fiscal year to end. The last full fiscal year’s number may already be outdated, especially late in the year.

What does TTM stand for?

TTM is a finance term that stands for trailing twelve months. It represents a company’s financials in the last 12 consecutive months. Trailing twelve-month figures include the financial metrics for the last four quarters, which amounts to a full year of business performance.

How to calculate TTM dividend?

A TTM dividend yield is calculated by adding up the dividend from the last four quarters, then dividing by the current stock price.

Why is it important to look at trailing 12-month numbers?

Looking at trailing 12-month numbers is useful because these are the most current annualized numbers, and they reduce the effects of seasonality.

How to calculate TTM?

Formula: TTM figure = Most recent quarter (s) + Last full year - Corresponding quarter (s) last year.

What valuation ratios use TTM numbers?

Other valuation ratios that use TTM numbers include the P/S ratio and the P/FCF ratio.

What does trailing mean in math?

Note: Trailing means the same as past. It uses numbers from the past, as opposed to forward numbers which look at future estimates.

What is TTM in stock?

TTM figures can also be used to calculate financial ratios. The price/earnings ratio is often referred to as P/E (TTM) and is calculated as the stock's current price divided by a company's trailing 12-month earnings per share (EPS).

What is TTM in financial planning?

Companies conducting internal corporate financial planning and analysis have access to detailed and very recent financial data. They use the TTM format to evaluate key performance indicators (KPI), revenue growth, margins, working capital management and other metrics that may vary seasonally or show temporary volatility.

Why is TTM important in 2021?

Annualized data is important because it helps neutralize the effects of seasonality and dilutes the impact of non-recurring abnormalities in financial results, such as temporary changes in demand, ...

What is keeping a running tab of TTM metrics?

By keeping a running tab of TTM metrics, a firm's management and stakeholders can understand how the company is doing at any point in time using an apples-to-apples comparison. In other words, by always looking at the previous 12 months, effects such as seasonality or one-time charges can be smoothed out.

What is TTM revenue?

TTM revenue (sales) and profitability metrics show how much money the company brought in and earned over the previous one-year period, regardless of which quarter's financial statements are being released. Less frequently, firms provide monthly statements with sales volumes or key performance indicators.

What is trailing 12 months?

Trailing 12-month, or TTM, refers to the past 12 consecutive months of a company’s performance data used for reporting financial figures.

What is a TTM?

A company’s profits or earnings are divided by the total number of outstanding shares of stock to calculate the Earnings per Share (ttm). Earnings per Share is usually abbreviated as EPS and the “ttm” that follows stands for Trailing Twelve Months. This means that EPS (ttm) is the total earnings or profits the company has made over ...

Why do traders care about earnings per share?

Ultimately, the value of any company must come down to its potential return to shareholders in the form of profits or dividends. Earnings or profits are watched very closely for signs of strength or weakness. However, earnings can be diluted across a very large number of shareholders.

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What does TTM stand for in math?

TTM is the abbreviation for trailing twelve months i .e. performance of respective matrix or line item in span of last 12 months.

What is the difference between EBIT and TTM?

EBIT is abbreviation of Earning before Interest and Tax. As EBIT or earnings of company surges the ladder of success, it expands the possibilities of contribution to shareholder’s earnings. TTM is the abbreviation for trailing twelve months i.e. performance of respective matrix or line item in span of last 12 months.

What is Paytm in India?

This led to the birth of the gigantic platform - Paytm. It is currently India’s leading digital ecosystem for consumers and merchants. Post-listing Paytm could be the most valuable digital property after Flipkart if it receives a value in the range of $25-30 billion.

Why is it important to compare the price of a stock to the earnings of a company?

It helps to compare the price of a company’s stock to the earnings the company generates. This comparison helps to learn whether markets are overvaluing or undervaluing a stock.

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