What is Last Twelve Months?

Last Twelve Months (LTM) refers to a time period of the most recent twelve consecutive months, typically used for financial reporting and analysis. It’s a way to look at a company’s financial performance over the past year, regardless of the current calendar year or fiscal year.

LTM is often used to assess a company’s performance, trends, and financial metrics, providing a snapshot of its recent operational and financial results. This timeframe is useful because it smooths out seasonal variations and short-term fluctuations, offering a more comprehensive view of a company’s overall performance.

Common financial metrics that are often reported or analyzed on an LTM basis include:

Revenue LTM: The total revenue generated by the company over the last twelve months. This metric provides insights into the company’s sales growth or decline over that period.

EBITDA LTM: Earnings Before Interest, Taxes, Depreciation, and Amortization over the last twelve months. EBITDA is a measure of operating profitability.

Net Income LTM: The company’s net income (profit) over the last twelve months.

Free Cash Flow LTM: The cash flow generated by the company’s operations, minus capital expenditures, over the last twelve months. It provides insights into the company’s ability to generate cash from its core operations.

Earnings Per Share LTM: The company’s earnings divided by the number of outstanding shares over the last twelve months. This metric is often used to assess a company’s profitability on a per-share basis.

LTM figures are particularly useful when comparing a company’s performance to itself over time or when comparing it to other companies in the same industry. It helps to account for business cycles, economic conditions, and any other factors that may impact short-term financial performance.

To calculate LTM figures, you would sum up the relevant financial data for the most recent twelve months, regardless of whether the months align with the calendar year or the company’s fiscal year. This rolling twelve-month approach provides a dynamic perspective on a company’s financial health and allows for more meaningful analysis.