Short definition: Last Twelve Months (LTM) is a period of time used in financial analysis to measure a company’s performance over the trailing 12 months from the current date.
Explanation: LTM financial data provides a snapshot of a company’s recent performance and is often used to evaluate trends, compare performance to competitors, and make informed investment decisions. It can be calculated for various financial metrics such as revenue, net income, or earnings per share (EPS).
Example: If today is August 5, 2024, the LTM period would be from August 6, 2023, to August 5, 2024.