These evaluations can include calculating key performance indicators such as net profit margin or liquidity. Although it is frequently used on Snapchat, the term wasn’t created on the platform, and you may see it used across a whole range of different social media apps including Instagram, WhatsApp, Facebook, TikTok, and more. For years now, Snapchat has been one of the most popular social media apps out there, allowing users to easily communicate with their friends and share posts with people on their contact list in the form of Stories. In texting and digital communication platforms, TTM stands for “Talk To Me.” This acronym is used as a simple request to initiate a conversation, indicating that the sender is willing to talk or discuss any topic.
It cannot determine profit, a company’s ability to turn said profit, or its capability to generate gross revenue. When using Snapchat, or other platforms such as WhatsApp or Instagram, you may have at some point come across the term ‘TTM.’ Here’s everything to know about what it means, and when it’s used. Trailing P/E can be contrasted with the forward P/E, which instead uses projected future earnings to calculate the price-to-earnings ratio. Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader.
What Is Trailing Twelve Months (TTM)?
Securities and Exchange Commission (SEC) filings generally display financial results on a quarterly or year-to-date basis rather than TTM. 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. Earnings per Share, or EPS, is valued by analysts as a key indicator of the overall profitability of a company. Thus, some analysts often overlook this metric in order to focus more on profitability. However, it can still be vital in determining the strengths and weaknesses of a company’s revenue-generating practices.
It is also used to calculate financial ratios, such as the price-to-earnings (P/E) ratio and return on equity (ROE). To get a clear picture of the last year of performance, analysts and investors often must calculate their own TTM figures from current and prior financial statements. 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 Trailing Twelve Months (TTM) Is Important in Finance
For example, working capital is compiled from balance sheet line items, which are averaged. However, depreciation is deducted from income on a quarterly basis; so analysts look ttm stands for at the last four quarters as reported on the income statement. Trailing 12 months (TTM) is a common term referring to a way to measure the performance of a company over time.
In social media, the gaming and beauty communities on Instagram seem to promote this acronym more than others. On the whole,the term is a wonderful acronym that takes the fear out of the audience and encourages them to communicate and sometimes empathize with the influencer. Slang like this is typical of the influencer community and is often used in their captions and stories to create space for conversations with their followers.
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TTM is common among millennials and younger generations who engage in text and chat conversations. By looking at TTM data, we can avoid comparing Target’s seasonal apples to Altria’s steady oranges and instead compare the companies’ long-term performance trends on equal terms. TTM figures are produced for a variety of metrics including earnings, EPS, P/E, and yield. In the most recent quarter, Q-1 of 2023, the company reported $75 million in quarterly revenue. In the recent quarters leading up to the end of fiscal year 2022, the company’s revenue has grown significantly. Suppose you’re tasked with calculating the revenue of a company on a trailing twelve-month basis.
While previous fiscal year used for tax and accounting purposes, the TTM abbreviation refers to the prior 12 month period up through the most recently updated financial records. TTM, an acronym for “Talk To Me,” is a casual and straightforward phrase used within the context of conversations, texting, and social posts. Its purpose is to initiate a conversation or encourage the exchange of information. Acme’s free cash flows (FCFs) over the last four quarters are positive, while Beta’s TTM FCF results are negative. This means that Acme made more cash than it spent over the past four quarters, while Beta consumed cash over the last fiscal year.
TTM On Financial Statements
Our company’s trailing twelve months (TTM) revenue amounts to $200 million, which reflects its financial performance and growth profile far more accurately than its fiscal year 2022 revenue of $145 million. Trailing Twelve Months is a phrase used to indicate the previous 12 consecutive months of a company’s financial data, leading up to the time that a report of that data is generated. The longer-term view of a company’s performance often carries more weight than sudden changes in a single report.
- It is a common financial metric used by investors to analyze various aspects of a company’s financial performance, such as earnings, revenue, and valuation ratios.
- TTM stands for “talk to me,” a shorthand way of encouraging someone to send a message or engage in conversation.
- Trailing P/E can be contrasted with the forward P/E, which instead uses projected future earnings to calculate the price-to-earnings ratio.
- This encourages the followers and creates an opportunity to interact and share their favorite delicacies in a lively conversation.
This formula starts with a company’s annual financial report, then adds the reports for any quarters following the annual report, then subtracts the corresponding quarterly from the annual report. As you can see, Target’s revenue rose steadily in this period, while Altria’s top-line sales declined. This view smooths out any short-term fluctuations in revenue that might be caused by seasonal factors or one-time items.
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The Trailing Twelve Months (TTM) portrays a company’s financial performance across the past four quarters, i.e. the most recent 12-month period. Typically TTM figures are generated to show either the most recent twelve months of a company’s trading or to show the last twelve months of its trading before a certain event, such as an acquisition, took place. TTM stands for “trailing twelve months” and is a backward-looking metric that captures the financial performance of a company in its latest four reporting quarters.
The easiest way to calculate data from the trailing 12 months is to add by the previous four quarters, the three-month periods into which the fiscal year is broken up. TTM Revenue, for example, indicates the amount of revenue that a company has earned over the trailing twelve months. This is a key indicator which can determine whether a company is experiencing growth, and if so, where that growth is coming from.
TTM Meaning: What Does TTM Mean and Stand for?
Trailing Twelve Months is a phrase used to indicate the previous 12 consecutive months of a company’s financial data, leading up to the time that a report of that data is generated. The origin of TTM is not very clear, but it likely emerged with the rise of text messaging and social media platforms. As these platforms have evolved, so too has the need for abbreviations and acronyms to keep up with the fast-paced nature of online communication. TTM is one example of an abbreviation designed to make conversation swifter and more efficient while maintaining an informal tone. TTM stands for “talk to me,” a shorthand way of encouraging someone to send a message or engage in conversation.
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Our goal is to deliver the most understandable and comprehensive explanations of financial topics using simple writing complemented by helpful graphics and animation videos. This team of experts helps Finance Strategists maintain the highest level of accuracy and professionalism possible. At Finance Strategists, we partner with financial experts to ensure the accuracy of our financial content. You are most likely to see it in DMs, but this term can also pop up in Stories, posts, and videos when a user is speaking to a broader group of people. For example, it might be employed when you are eager to hear about a specific topic or when you simply want to have a light conversation. Understanding the situation and the tone of the message is important when using TTM – talk to me to ensure a smooth and appropriate interaction.