TTM vs Quarterly Results: Which Should You Use?
TTM vs quarterly results explained for Bursa Malaysia investors: when to use trailing twelve months, how to compute it, with a worked RM example.
TTM vs Quarterly Results: Which Should You Use?
Quarterly results show the latest three months and reveal momentum, but they are noisy and seasonal. Trailing twelve months (TTM) adds the last four reported quarters, smoothing seasonality and giving a fresher view than the last annual report. Use quarterly for direction, TTM for valuation and trend.
Last reviewed: 28 October 2026 · Author: Finworld Team · Prepared by the Finworld team, who have passed SIDC examination modules 6 (Stock Market and Securities Law) and 7 (Financial Statement Analysis and Asset Valuation)
Two lenses on the same company
A listed company on Bursa Malaysia reports every quarter, so an investor has several ways to look at earnings. The latest quarter shows what has just happened. The last financial year shows the full cycle, but it can be stale. TTM, short for trailing twelve months, sits between the two. It always covers the most recent twelve months of reported results and moves forward every time a new quarterly report is released.
Neither lens is superior. They answer different questions, and mixing them up is a common source of confusion, especially when two sources quote different earnings per share (EPS) or price-to-earnings ratios for the same stock.
What each measure is good for
| Aspect | Latest quarter | TTM | Last financial year |
|---|---|---|---|
| Time covered | 3 months | Last 4 reported quarters | 12 months, may be dated |
| Freshness | Highest | High | Lowest |
| Seasonality | Distorts | Largely removed | Removed |
| Noise | High | Medium | Low |
| Best use | Momentum, turning points | Valuation ratios, trend | Long-term comparison |
The latest quarter is best for noticing a turn: profit accelerating, margins slipping, a new cost line appearing. Its weakness is that three months is a short window. A single delayed delivery, a festive timing shift or a one-off gain can swing a quarter.
TTM is better for valuation. A price-to-earnings ratio calculated on TTM earnings reflects what the company has actually earned recently, and it does not jump just because one season was unusually strong or weak. TTM is also the natural basis for comparing companies with different year-ends, because it puts them on the same twelve-month footing.
Step-by-step method
Step 1: Collect the last four quarters. Use reported numbers for revenue, net profit attributable to owners and operating cash flow.
Step 2: Add them. The sum is your TTM figure. If the fourth quarter figure is reported only as a full year, derive it by subtracting nine-month figures from the annual figure.
Step 3: Compare TTM now versus TTM a quarter or a year ago. This shows whether the underlying trend is rising or falling without seasonal noise.
Step 4: Compare the latest quarter with the same quarter last year. This checks momentum. If the latest quarter is much stronger or weaker than TTM would suggest, find out why.
Step 5: Adjust for one-offs. Remove unusual gains or charges from the relevant quarter, then recalculate TTM.
Step 6: Use TTM for valuation ratios. Divide the share price by TTM EPS and compare with the company’s history and its sector.
Step 7: Watch the base effect. When an unusually strong quarter drops out of the four-quarter window, TTM can fall even if the current quarter is steady.
Worked example: Company A
Company A is a hypothetical Main Market consumer goods firm, with a December year-end. After Q3 is reported, the net profit (RM million) looks like this.
| Quarter | Net profit |
|---|---|
| Q4 last year | 18.0 |
| Q1 this year | 12.0 |
| Q2 this year | 14.0 |
| Q3 this year | 20.0 |
| Q3 last year | 10.0 |
| TTM after Q3 | 64.0 |
TTM is 18 + 12 + 14 + 20 = RM64.0 million. The previous TTM, after Q2 this year, replaced Q3 this year’s RM20.0 million with Q3 last year’s RM10.0 million, giving RM54.0 million. So TTM profit rose RM10.0 million in one quarter. Now consider the quarter alone: Q3 profit doubled year-on-year, from RM10.0 million to RM20.0 million. The quarter looks dramatic, while TTM shows a more measured rise of about 18.5%.
Suppose the company has 400 million shares. TTM EPS is RM64.0 / 400 = 16.0 sen. At a hypothetical share price of RM2.40, the TTM price-to-earnings ratio is 15.0 times. If you had annualised the strong Q3 (RM20.0 million x 4 = RM80.0 million), EPS would be 20.0 sen and the ratio 12.0 times, making the stock look much cheaper than it is on trailing evidence. This is why annualising a single quarter is risky. Use TTM for valuation, and use the quarter to ask what changed.
Checklist
- Four most recent reported quarters collected.
- Net profit attributable to owners used, not group profit.
- One-off items removed from the relevant quarter.
- TTM compared with TTM a year earlier.
- Latest quarter compared with the same quarter last year.
- Seasonal pattern of the business understood.
- No change in financial year or major corporate action distorting the window.
- Valuation ratio computed on TTM EPS, not annualised quarterly EPS.
Common mistakes
- Annualising one quarter. Multiplying the best or worst quarter by four overstates or understates the run rate.
- Mixing bases. Comparing one stock’s TTM price-to-earnings with another’s annual figure is not like for like.
- Ignoring share count changes. A rights issue or bonus issue changes EPS, so use adjusted figures.
- Applying TTM to balance sheet items. Use the latest snapshot instead.
- Forgetting the base effect. TTM moves when a quarter drops out of the window, not only when a new one arrives.
- Equating a cheap ratio with a good entry. A low price-to-earnings on TTM does not tell you about timing, and a good stock is not always a good entry.
How Finworld helps
In Finworld’s financial statements view you can switch between annual, quarterly and trailing-12-month presentations for the income statement, balance sheet, cash flow statement and ratios, so you do not have to add four quarters by hand. Comparing a company against its sector or top companies on the same basis keeps the comparison fair. The advanced stock filter allows financial-statement and valuation criteria to be combined with technical and volume criteria for shortlisting, and the glossary explains the terms used. Data is end-of-day, and figures update after each company publishes its report.
Related guides
- Core Net Profit vs Reported Profit: A Bursa Guide
- EV/EBITDA for Bursa Stocks: How to Read the Multiple
- How to Read a Bursa Malaysia Announcement and Shareholder Circular
- Inventory Turnover Ratio: Reading It for Bursa Companies
- Operating Cash Flow vs Net Profit: Reading the Gap for Bursa Stocks
- ROIC vs ROE: How to Compare Returns for Bursa Stocks
Frequently asked questions
How do I calculate TTM?
Add the figures from the most recent four reported quarters. A shortcut is the last full financial year, plus the year-to-date of the current year, minus the year-to-date of the prior year.
Why not just use the annual report?
The annual figure can be up to a year old by the time you read it. TTM rolls forward each time a new quarter is reported, so it reflects recent performance.
Is TTM useful for balance sheet items?
Not really. Balance sheet items are snapshots at a date, so you use the latest figure. TTM is for flow items such as revenue, profit and cash flow.
When is TTM misleading?
When a company has just made an acquisition or disposal, changed its financial year, or booked a large one-off inside the four quarters. In those cases adjust or read the notes.
Does Finworld show TTM?
Yes. Finworld’s financial statements view offers annual, quarterly and trailing-12-month options for the income statement, balance sheet, cash flow and ratios. Data is end-of-day.
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Keep learning: TTM (glossary) · PE ratio (glossary) · Financial statements feature · How to read a quarterly report on Bursa
Finworld provides market education and research tools only. This is not investment advice. Market data is end-of-day.
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