Last Twelve Months

Last updated: March 22, 2024

What Does Last Twelve Months Mean?

The Last Twelve Months (LTM) refers to the last 12 month period for a selected financial metric such as revenue, earnings, or EBITDA. For example, the LTM revenue of a company for the month of May would include the revenue from June of the prior year to May of the current year. The last twelve months is also sometimes referred to as the Trailing Twelve Months (TTM).


Divestopedia Explains Last Twelve Months

The LTM financial results are often used to perform valuations on companies. The LTM calculation is particularly important for companies that have experienced a strong last 12 months. Take for example a company that has fiscal year-end of December 31. This company has been experiencing significant growth, and on September 30 it is approached by a potential purchaser. The company owner will want to calculate the LTM financial results to assist in the valuation, so a full year of results is included.

The LTM calculation can also be done on a “pro-forma” basis. This calculation would present the last 12 months of financial results including the estimated impact of a specific event that occurred during the 12 month period. This specific event could be an acquisition, the launch of a new product line, or the addition of a manufacturing facility. The pro-forma LTM would be calculated to show what the financial results would have been if this specific event had been included.


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