Meaning and calculation
How can you evaluate trailing business sales without waiting for a full annual report? Summing the four most recent distinct quarters creates a continuous twelve-month baseline that smooths seasonal peaks and dips.
TTM revenue = Q1 + Q2 + Q3 + Q4 for four consecutive, nonoverlapping quarters
Source references: Investor.gov: How to Read a 10-K/10-Q
A hypothetical worked example
Hypothetical: Adding four distinct consecutive quarterly revenues of USD 20 million, USD 25 million, USD 25 million, and USD 30 million yields a trailing twelve-month revenue of USD 100 million.
What can make this comparison misleading?
Never combine overlapping year-to-date figures with single quarters, as double-counting periods will distort your trailing revenue total.
What to record beside the number
- The filing URL, document section and issuer identity.
- The reporting period, currency, units and whether the figure is reported or calculated.
- The exact formula and any missing inputs or differences in definitions.
Sources & corrections
Prepared with AI assistance and automated source and calculation checks. No independent human analyst review is claimed. Hypothetical examples and historical data are identified in the text.
Use the linked primary sources to check definitions and company disclosures. Filings and service details can change; verify the relevant period before relying on a figure.
Found an error? Send a correction with the page, the claim and a supporting source. These guides provide general education; they do not assess your financial circumstances or recommend a trade. Read our research disclosures.