Last 12 month or LTM produces rolling yearly income statement items So imagine if I'm doing my EV over EBIT? I've got annual figures up to the end of quarter for the last year So maybe the end of December And I've also got some quarterly figures for the first quarter, second quarter and the third quarter of the year It's very tempting to do your EV over EBIT up to the end of the last full (up to the end of December, up to the quarter full) But what I could do, is I could actually create the last twelve months up to the end of the most recent quarter three So I take the last quarter of the historical year, quarter for the last year And I then add on the subsequent three reported quarters thereafter What I end up with is a created 12 month (last 12 months) But remember all of those figures that I've used, have been audited and given to us in a set of accounts Let's have a look at an example Let's use quarterly reports to calculate last 12 months numbers Here we've got a company A and company A has sales for the full year to 2014 and 2015 We've then got some information from 2015, the first quarter of 2015 And we've got the most recent set of information (first quarter of 2016) How do we calculate the LTM figures? Well I firstly take the annual figures for 2015, so that's already 12 months worth of data And I then subtract out the oldest 3 months (the January, February and March first quarter) I then add on the newest 3 months, Jan, Feb and March from this year (2016) What that gives me then is the most recent 12 months, LTM figures