The earnings, or profits, as reported by the company, for the trailing 12 months . Net income reflects the income available for the common stockholders.
Benefit
This figure gives a more accurate picture of a company’s recent performance than the most recent annual net income figure, which may be more than a year old. If TTM net income is lower than Y1 net income, it means the company’s earnings have been slipping recently.
Origin
This information is found in the income statements of the company’s annual report and most recent 10-Q report.
For the Pros
Use the following formula to see if a company has recently bought back or issued shares:
[(Net Income TTM/EPS TTM) - (Net Income Year 1/EPS Year 1)]/(Net Income Year 1/EPS Year 1) x 100
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