What is TTM?
The TTM (or trailing twelve months) is a financial ratio that’s used to measure the profitability of a company over a specific period. It allows you to see how well a business has done over the last 12 months and compare it with what it did in the previous year.
It’s also used to help investors determine if a stock is under- or overvalued by comparing its current price with its average share price for the past four quarters (or three months). The TTM calculator you’re about to use does all of this for you!
So if you were calculating how much profit your business had made over the past year, you would take its total income over that period (say $1 million) and divide it by your sales figures over that same time period ($2 million).
What’s so amazing about TTM? Well, companies can use this simple calculation to see how profitable they’ve been since their start date. It also allows them to compare themselves against competitors in their industry using similar metrics—and even better: no spreadsheet required!
What is a TTM Calculator?
A TTM calculator is a tool that allows you to calculate the trailing twelve months (TTM) performance of your stock. TTM refers to the time period between the most recent reporting date and twelve months prior. In other words, it measures how well a company performed over the last 12 months.
The TTM calculation is used by investors and analysts for comparing a company’s performance over one year periods. It can also be used when analyzing historical data from companies with similar characteristics or industries as yours.
How to Calculate TTM?
To calculate TTM, you need to know the total sales number and the number of months since the start of your business.
First, divide the total sales by the number of months. This gives you an average monthly sales figure. Next, add up all of your monthly sales figures for each month and divide by 12 (the number of months in a year). This gives you an average annual sales figure.
Finally, take that annual average and divide it by the total number of months from the start of your business until now (the numerator). This is your TTM!
How Does this TTM Calculator Work?
This tool is an easy way to calculate the TTM profit margin for a company or business. The formula for calculating TTM profit margin is:
- Revenue / Revenue – Cost of Goods Sold = Gross Profit Margin + Other Expenses – Operating Income = EBITDA + Interest Expense – Taxes = Net Income – Depreciation + Amortization = Free Cash Flow
Example of TTM Calculator
To calculate the TTM profit margin, use this formula: {Profit Margin} = Revenue / Revenue – Cost of Goods Sold. In other words, it is a simple division that calculates how much you are profiting on each dollar of sales. The result will be listed in percent (%).
For example, if you sold $1 million worth of products and had COGS costs of $500k, your profit margin would be 50% ($500k / $1m).
Comparing with LTM vs TTM:
To compare these two metrics (TTM vs LTM) there are some considerations to take into account: – LTM means Last Twelve Months which refers to the period between today’s date and same date last year; – TTM means Trailing Twelve Months which refers to the period between current date and same date one year ago.
Another difference between these two metrics is that when calculating LTM revenue only consider sales made during last twelve months while when calculating TTM revenue also include revenue from previous quarters/years but exclude any expenses related to those periods (e.g., salaries).
Conclusion
This TTM calculator is a great tool to use when you’re looking to see how your business is doing over time. It’s important to remember that this type of calculation only applies to businesses that have been around for at least three years so if your company hasn’t been around long enough yet then this formula won’t work!
FAQs
What is the difference between YTD and TTM?
YTD stands for year-to-date, which means it refers to the current year. This term is used when calculating results for the overall time period from January 1st through December 31st. TTM stands for trailing twelve months, which means it refers to the previous twelve months ending on December 31st.
Is LTM and TTM the same?
The LTM stands for “Last Twelve Months” and represents the last twelve months of your company’s financial records. The TTM stands for “Trailing Twelve Months” and represents all twelve months in a particular year, including the current month.
Why is TTM important?
TTM helps companies understand how well they’ve performed over certain lengths of time by comparing like-items across multiple periods without having to adjust them individually beforehand – except when necessary (i.e., if they’re not comparable enough because they don’t share any common factors).
What is TTM profit margin?
TTM profit margin is the ratio of net income to revenue. It’s an important metric used to gauge a company’s profitability and how it compares to its competitors.
