TTM Net Income

Category

Ratios

Units

Currency

Formula

TTM Net Income = Sum of net income over the four most recent quarters

Reference

Regulation S-X Rule 5-03.18 and 5-03.20 (Net income or loss; Net income attributable to the controlling interest)

Source

Calculated by GeminIQ from figures reported in SEC filings

TTM net income is a company's bottom-line profit over the trailing twelve months, the four most recent fiscal quarters, after all expenses, interest, taxes, and discontinued operations. It is the most widely used current measure of how much a company earned over a full year.

Because it rolls forward with each 10-Q, TTM net income always reflects the latest reported quarter while still covering a complete year, which removes the seasonality that makes a single quarter hard to read.

Most data sources, and most price-to-earnings calculations, use net income attributable to the parent company, tagged NetIncomeLoss in XBRL. That is consolidated profit after the share belonging to noncontrolling interests has been removed. A broader element, ProfitLoss, includes the noncontrolling share. Regulation S-X Rule 5-03 lists net income or loss (caption 18), the amount attributable to the noncontrolling interest (caption 19), and the amount attributable to the controlling interest (caption 20) as separate lines.

Income statements in a 10-Q present both the latest quarter and the fiscal year to date. There is no fourth-quarter 10-Q, so the fourth quarter is the 10-K annual figure minus the nine-month year-to-date figure from the third-quarter filing, and the TTM total is the sum of the latest four quarters. An equivalent calculation is the last annual figure plus the current year-to-date figure minus the prior year's matching year-to-date figure.

Net income includes one-time items such as impairments, restructuring charges, gains on asset sales, and results from discontinued operations, all of which stay in the trailing total for four quarters. Analysts often look at TTM income from continuing operations or an adjusted figure alongside it. TTM net income is the numerator of profit margin, return on equity, and return on assets, and, divided by shares, the basis of trailing P/E. Comparing it with TTM operating cash flow shows how much of the profit is backed by cash.