LTM revenue ( last twelve month revenue)

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

1. LTM Revenue By:- eFinanceManagement.com

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

3. Meaning of LTM Revenue 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 quarterly figures and adjusting it for the full year . The terms "last twelve months" or "trailing twelve months" frequently appear in a company's earnings reports or other  financial statements .

4. Uses of LTM Revenue Concept 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 synergy in operating performances of any restructured company . 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 avoid potentially misleading short-term measurements

5. Example of LTM Revenue 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. Continue… LTM for July 2015 :- 100+120+140+150 = 510 LTM for November 2015:- 120+140+150+200 = 610 To know more about it Please click on the link given below… https :// efinancemanagement.com/financial-analysis/ltm-revenue Thank You