TTM
TTM (trailing twelve months) is a rolling 12-month view of your business finances. Here's how it works.
November 2023 | Published by Xero
Published Friday 24 July 2026
Table of contents
Key takeaways
- TTM (Trailing Twelve Months) is the past 12 consecutive months of your business's financial or performance data.
- It gives a rolling 12-month view and is also known as LTM (Last Twelve Months).
- You can calculate it from the most recent 12 complete months, the last four complete quarters, or your last full fiscal year plus current year-to-date figures minus the prior-year equivalent.
- Small businesses use TTM to smooth out seasonal swings and see a current picture when planning, tracking growth, or talking to lenders.
What does TTM mean?
TTM, or trailing twelve months, is the past 12 consecutive months of a business's financial or performance data. It's a rolling figure that always covers a full year, wherever you are in your accounting calendar.
You might also see it written as LTM, or last twelve months, which means the same thing. You pull these numbers from reports such as your profit and loss statement.
TTM is different from year to date (YTD). YTD only counts the period from the start of your current financial year up to today, so it can be less than 12 months, while TTM is always a full 12 months.
Why is TTM used?
TTM keeps your view of the business current. It replaces year-old fiscal figures with a rolling total that updates as each month closes.
- Removes reliance on outdated fiscal-year numbers that no longer reflect how you're trading
- Smooths seasonal ups and downs and one-off changes so the underlying trend is clearer
- Gives a current, rolling view of performance at any point in the year
How is TTM used?
Once you have a TTM figure, you can use it in day-to-day decisions and bigger conversations about the business. It gives a consistent basis for comparison, because every figure covers the same 12-month span.
- Show lenders and investors an up-to-date picture when you apply for finance
- Support business planning and budgeting with current numbers
- Spot trends earlier than annual reports allow
- Monitor growth month by month
- Compare your performance against competitors
- Track key performance indicators (KPIs) over a rolling year
TTM figures also feed valuation measures, such as the price-to-earnings (P/E) ratio and EV/EBITDA, which lenders and buyers use to size up a business. You can draw all of these numbers from your financial reports at any time.
Where do you find TTM data?
You can build TTM data from almost any figure in your accounts. These are the measures small businesses track most often.
- TTM revenue: your total sales income over the past 12 months
- TTM cash flow: your net cash flow in and out of the business across the same period
- TTM accounts receivable turnover ratio: how quickly you collect payment from customers over a rolling year
How do you calculate TTM?
You can work out a TTM figure in a few ways, depending on the data you have to hand. All three methods give you the same rolling 12-month total.
- Add up the most recent 12 complete months of data
- Total the last four complete quarters
- Take your latest full fiscal year, add current year-to-date figures, then subtract the prior-year year-to-date figures
Here's how the third method works in practice. If your last full financial year revenue was R1,200,000, your current year-to-date revenue is R350,000 and your prior-year year-to-date revenue was R300,000, your TTM revenue is R1,200,000 + R350,000 - R300,000 = R1,250,000.
Track your trailing twelve months with Xero
Xero's reporting tools keep your rolling financial figures up to date as each transaction is reconciled, so your TTM view stays current. You can run profit and loss, cash flow and other reports whenever you need them, without waiting for year-end.
See how easy it is to keep your numbers current when you try Xero and get one month free.
FAQs on TTM
Here are answers to some frequently asked questions about TTM.
Is TTM the same as LTM?
Yes, they're two names for the same thing. Both describe the most recent 12 consecutive months of data.
What is the difference between TTM and YTD?
YTD resets at the start of each financial year, so it can cover anything from one day to 12 months. TTM never resets, giving you a steady full-year view for comparison.
What is TTM revenue?
TTM revenue is your total sales income over the past 12 consecutive months. It shows current earning power without the distortion of a single strong or weak quarter.
Is TTM the same as a financial year?
No. A financial year is a fixed 12-month period set by your accounting calendar, while TTM is a rolling 12 months that ends with your most recent data.
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Disclaimer
This glossary is for small business owners. The definitions are written with their requirements in mind. More detailed definitions can be found in accounting textbooks or from an accounting professional. Xero does not provide accounting, tax, business or legal advice.