TTM Sales

Category

Ratios

Units

Currency

Formula

TTM Sales = Sum of revenue over the four most recent quarters

Reference

Regulation S-X Rule 5-03.1 (Net sales and gross revenues); ASC 606

Source

Calculated by GeminIQ from figures reported in SEC filings

TTM sales is a company's total revenue over the trailing twelve months, the four most recent fiscal quarters. It is the most current full-year measure of how much business a company does, and it updates with every quarterly filing.

Sales and revenue mean the same thing here: the amounts a company earned from selling goods, providing services, and its other ordinary business activities, net of discounts, returns, and allowances.

Companies usually tag revenue as Revenues or RevenueFromContractWithCustomerExcludingAssessedTax in XBRL. The second covers revenue recognized under ASC 606 as the company satisfies its obligations to customers, excluding sales, use, value-added, and excise taxes collected on behalf of governments. Regulation S-X Rule 5-03.1 asks companies to show net sales of tangible products, operating revenues of utilities, rental income, revenue from services, and other revenues separately, and to disclose excise taxes included in revenue when they reach 1% or more of the total.

Each 10-Q income statement shows the three-month and year-to-date figures. There is no separate fourth-quarter report, so the fourth quarter is derived as the 10-K annual revenue minus the nine-month revenue in the third-quarter 10-Q. The trailing total is the latest four quarters combined, or equivalently the last annual figure plus the current year-to-date figure minus the prior year's matching year-to-date figure. Acquisitions and divestitures inside the window affect the total, since a business bought mid-year contributes only the quarters after the deal closed.

TTM sales is the denominator of most margin measures, including gross, operating, and net margin, and of price-to-sales and EV/sales. Comparing it with the TTM figure a year earlier gives year-over-year growth that is not distorted by seasonality. For banks and insurers, revenue is defined differently, usually built from net interest income, fees, and premiums, so their TTM sales are not comparable with those of industrial companies.