TTM Minority Interest

Category

Ratios

Units

Currency

Formula

TTM Minority Interest = Sum of net income attributable to noncontrolling interest over the four most recent quarters

Reference

Regulation S-X Rule 5-03.19 (Net income attributable to the noncontrolling interest); ASC 810

Source

Calculated by GeminIQ from figures reported in SEC filings

TTM minority interest is the portion of a company's consolidated net income over the trailing twelve months that belongs to outside owners of its subsidiaries rather than to the parent company's shareholders. It sums the income statement's noncontrolling-interest line for the four most recent fiscal quarters.

When a parent controls a subsidiary but owns less than all of it, it consolidates all of the subsidiary's revenue, expenses, and profit, then assigns the outside owners their share. That share is subtracted from consolidated net income to reach net income attributable to the parent.

Minority interest is the older name for what US GAAP now calls noncontrolling interest. The change came with SFAS 160, whose guidance now sits in ASC 810, Consolidation. The quarterly figure is tagged NetIncomeLossAttributableToNoncontrollingInterest in XBRL, and Regulation S-X Rule 5-03.19 calls for net income attributable to the noncontrolling interest on the face of the income statement, between net income and net income attributable to the controlling interest. On the balance sheet, the outside owners' accumulated stake is shown within equity as noncontrolling interest.

The trailing figure adds up four quarters, with the fourth quarter derived as the 10-K annual amount minus the nine-month year-to-date amount from the third-quarter 10-Q. The amount can be negative when partly owned subsidiaries lose money, since losses are shared with the outside owners too. It tends to be significant for companies that run joint ventures, hold majority stakes in listed subsidiaries, or use structures such as operating partnerships, which are common among real estate investment trusts.

Analysts need this figure to keep calculations consistent. Consolidated measures such as EBIT, EBITDA, and enterprise value include 100% of the subsidiaries, so enterprise value should add the noncontrolling interest's value to match. Per-share measures such as EPS use income attributable to the parent, after minority interest is deducted. Mixing the two, for example valuing consolidated EBITDA against parent-only market capitalization without adding noncontrolling interest, overstates how cheap a company looks.