What it is: Trailing twelve months (TTM), also referred to as the last twelve months (LTM), represents a consecutive twelve-month period immediately preceding the current date. It is used to analyze financial performance and trends over a rolling year.
Why it is essential: TTM allows startups to assess their recent financial performance, identify trends, and compare their current results with the same period in previous years. It provides a comprehensive view of the company's performance over a relevant timeframe.
Formulas: There are no specific formulas associated with TTM.
How to use it in the context of startups: Startups can use TTM to evaluate their financial growth, track key performance indicators, and identify patterns or seasonality in their business. By analyzing TTM data, startups can make informed decisions regarding resource allocation, financial planning, and goal setting.
