What are the Last Twelve Months (LTM)?

The term Last Twelve Months (LTM) denotes the latest 12 months for which financial figures of a firm are available. The LTM term is also referred to as Trailing Twelve Months (TTM).

Using LTM financial figures helps analyze a business’s current financial performance without being confined to the company’s latest fiscal year. For instance, if a business’s LTM revenue is presented as of June 30, it would mostly reflect revenue earned from July 1 of last year to June 30 of the current year.

In LTM finance, LTM figures are often utilized in the calculations of LTM revenue, LTM EBITDA, LTM net income, and LTM cash flow.

LTM Formula

Here is a practical example of LTM revenue

A company’s fiscal year runs January–December. It’s now August, and someone wants LTM revenue as of the end of July.

• Full prior fiscal year revenue (last Jan–Dec): $12,000,000
• Current year-to-date revenue (this Jan–Jul): $7,500,000
• Prior year’s same year-to-date revenue (last Jan–Jul): $6,800,000

LTM Revenue=$12,000,000+$7,500,000−$6,800,000=$12,700,000 

This LTM revenue figure of $12.7M reflects the trailing 12 months ending in July — a more current picture than the $12M full-year figure alone, which is already up to 7 months stale.

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