Just like we would rely on our latest health report to find out our health status, investors should use the latest twelve months results to assess the fundamentals of the company.
By relying on fiscal results solely, we would not know if the latest business performance has deteriorated.
How do we adjust for Last Twelve Month (LTM) or Trailing Twelve Month (TTM)? Is the adjustment the same for Balance Sheet?
Check out the graphic below to understand more: