Let's Today know Something about LTM Revenue(Last Twelve Month Revenue) Which You must to know Which is quite Interesting.....

1. By:- eFinanceManagement.com

2. 1.Maning of LTMRevenue
2.Uses of LTM Revenue
3.Example of LTMRevenue

3. *LTM Revenue is a popular term used in the world of finance as a measurement of a
company's financial health. It reports or calculates the financial figures for the “past 12
months.”
*LTM stands for “Last Twelve Months” and is similar in meaning to TTM, or “Trailing
Twelve Months.” It reports or calculates the financial figures for the “past 12 months.” LTM
or TTM Revenue shows a company’s performance in the past year rather than just seeing
the quarterlyfigures andadjusting it for the full year.
*The terms"last twelvemonths"or "trailingtwelve months"frequentlyappearin a
company's earningsreports or other financial statements.

4. *LTM is used in Mergers and Acquisitions. potential buyers prefer to value the acquisition
price of Target Company based on TTM or LTM which helps them to determine the actual
operating performance of the company without taking effects of its financial and investment
decisions.
*LTM gives an idea about pure operating results of any young company and also tells about
the effect of synergyin operatingperformances of any restructuredcompany.
*LTM is considered useful in assessing the most recent business performance indicative of the
company’s current trend
*Its figures are more current than the fiscal or annual financial statements which helps to
avoidpotentially misleading short-term measurements

5. *For the period ending August 2016, LTM period will be from “September 2015 to
August 2016.”
*The LTM revenue is used especially by analysts and acquirers while valuing the firm
or rating it as Overweight, Neutral, etc., as they want to see the company’s growth
potential and performance in relation to its peers.
Period Oct-Dec
2014
Jan-
March
2015
April-
June
2015
July-
Aug
2015
Sep-Dec
2015
Revenue 100 120 140 150 200

6. *LTMfor July2015:- 100+120+140+150= 510
*LTMfor November 2015:- 120+140+150+200= 610
*To knowmore about it Please click on the linkgivenbelow…
https://efinancemanagement.com/financi
al-analysis/ltm-revenue
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