trailing twelve months
Definition
Trailing twelve months (often written as TTM) refers to the most recent 12-month period of financial data for a business, measured backward from today rather than following a standard calendar year. Lenders, investors, and buyers use this number to get the freshest possible snapshot of how a business is actually performing right now.
Example
If a lender pulls your TTM revenue in October 2024, they are looking at your income from November 2023 through October 2024, which gives them a more current picture than waiting for your December year-end numbers.
Watch Out
If your business had a rough patch in the past year, your TTM figures will reflect that slump directly, which can hurt your chances of getting a loan or attracting investors even if things have recently turned around.
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This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.