ACCOUNTING GLOSSARY
TTM
Trailing Twelve Months
Financial results for the most recent consecutive twelve-month period.
What does TTM mean?
Financial results for the most recent consecutive twelve-month period. Professionals may calculate, document or apply this concept differently depending on the transaction, accounting method, lender policy and governing documents. Borrowers should confirm the precise definition used in any term sheet or agreement.
TTM in context
A lender uses TTM revenue through June rather than the prior calendar year alone.
Why it matters in financing
TTM can influence how a lender, investor or advisor evaluates risk, pricing, structure, repayment capacity or transaction economics. It should be considered together with the complete financial picture rather than used alone.
Related accounting terms
Educational information only. This definition is general, may not match a particular lender or contract, and is not financial, accounting, tax or legal advice.