What value is considered as good ttm
10/30/2024 05:58am
The value of Trailing Twelve Months (TTM) that is considered "good" can vary depending on the context and the specific financial metrics being analyzed. However, here are some general guidelines:
1. **Positive TTM Earnings**: A positive TTM earnings per share (EPS) indicates that the company has generated a profit over the past year, which is a good sign. A higher positive TTM EPS suggests better profitability.
2. **High Revenue Growth**: A high TTM revenue growth rate, such as 10% or more, indicates that the company is experiencing significant growth and expanding its market share. This is generally considered a good sign.
3. **Healthy Profit Margins**: A high TTM profit margin, such as 15% or more, suggests that the company is generating a substantial portion of revenue as profit. This is a good indicator of operational efficiency and profitability.
4. **Low Debt-to-Equity Ratio**: A low TTM debt-to-equity ratio, such as below 0.5, indicates that the company has a strong balance sheet with a manageable level of debt. This is a good sign for financial stability.
5. **Positive Cash Flow**: A positive TTM free cash flow (FCF) indicates that the company is generating enough cash to support its operations and growth. Positive TTM FCF is generally considered a good sign.
It's important to note that these are general guidelines, and the specific thresholds for "good" TTM values can vary based on the industry, company size, and other factors. Investors and analysts often use TTM data to compare a company's performance against its own previous performance and against industry averages to determine what constitutes a "good" TTM value in a given context.