Earnings Per Share (TTM) (EPS(TTM)) is a financial metric that represents the average earnings per share over the past twelve months12. It is calculated by dividing the total adjusted income available to common shareholders by the diluted weighted average number of shares outstanding over the trailing twelve-month period34. EPS(TTM) is used to assess a company's profitability by providing a smoother and more recent view of its earnings than using a single quarter's or annual report12.
- Calculation: EPS(TTM) is calculated as the sum of the earnings per share from the last four quarters. For example, if you are looking at EPS(TTM) in July, it would include the earnings per share from the second quarter of the current year, the fourth quarter of the previous year, the third quarter of the year before that, and the second quarter of the year before the last quarter5.
- Interpretation: A higher EPS(TTM) indicates that a company is generating more profit per share over the past twelve months, which can be an indicator of its financial strength and growth. Conversely, a lower EPS(TTM) suggests that the company's earnings are lower or that it has experienced a decline in profitability2.
- Usage: EPS(TTM) is widely used in financial analysis to compare a company's current performance with its past performance and to assess its growth trajectory. It is also used in the calculation of other financial ratios, such as the price-to-earnings (P/E) ratio, which is calculated by dividing the stock's current price by the EPS(TTM)16.
In summary, EPS(TTM) provides a valuable tool for investors and analysts to gauge a company's recent financial performance and to identify trends and patterns in its earnings over the past year.
11/1/2024 10:08pm
