Trailing Twelve Months (TTM)
A financial metric called Trailing Twelve Months (TTM) adds up a business's revenue for the previous twelve months in a row. It offers a dynamic overview of the most recent financial performance of a company.
What it Means:
TTM is a real-time gauge that provides information about a company's revenue trends to Indian founders. It makes it possible to see things forward, which helps with strategic decision-making and performance assessment.
How to Calculate:
Add the revenue totals for the previous twelve months in order to get TTM. By compiling the most recent financial data, this rolling sum offers a more up-to-date and pertinent depiction of a business's revenue trajectory.
Why Measure:
For Indian founders, measuring time to market is crucial because it aids in determining the current revenue momentum. As opposed to fixed yearly numbers, TTM is more responsive to changes in the market and provides a more accurate means of assessing financial health and growth.
Examples:
Consider an e-commerce startup based in India. The TTM revenue would be the total of these figures, giving a detailed picture, if its monthly revenues over the previous twelve months were ₹2 million, ₹2.5 million, ₹3 million, and so on, up to ₹2.8 million in the twelfth month.
With its forward-looking financial perspective, TTM provides Indian founders with valuable support in trend analysis, investor relations, and strategic planning. Within the dynamic startup scene, TTM shows up as a useful resource for individuals figuring out how to achieve long-term success.