How to build a trailing twelve months (TTM) analysis in under 5 minutes

How to calculate and visualize a trailing twelve months (TTM) analysis in under 5 minutes using data from QuickBooks Online and Malartu.

Hey this is john with martu here we are going to take a look at building a trailing 12-month analysis in this episode of really good analytics so without further ado let’s talk about what that means so trailing 12-month analysis is a really good way to quickly and efficiently look at financial data and identify trends so what trailing twelve months we’ll be looking

At is for example if you look at a trailing 12-month revenue number for december of 2019 we would be summing the data from december back through the previous november what that can do is quickly let you see how your annual revenue run rate is trending over time and quickly let you in the see trends so the rule of thumb which we’ll get into more in a minute is if

More than two time periods are trending up then you’re on an upward trend even more than two time periods are trending down then you’re on a downward trend so in molarity this is very easy to do first we set up a blank dashboard then we’re going to add some blocks i always find it easy when i’m building dashboards to add all the blocks i want to use so today we’ll

Add them all to that we’re here and we will configure it before we start adding our data so this will be the setup that we’ll use today so let’s start adding some data so we’re gonna add to this revenue line from quickbooks so here’s our income and then we want to set it just quickly over here to a bar chart and we want to set the display increment to trailing

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Cold month which will automatically calculate and as you can see that was pretty quick and easy to do now one note about trailing 12 months in charts in malhar to our charts are going to automatically set a min and max value to show you the variance in the numbers so when looking at trailing twelve months for trend changes i find it easy to 0 the access which will

Put the access at zero and give you a more accurate view of how fast you’re trending i’m in different different areas so let’s keep moving along want to add expenses to our next block then we’ll do the same here and then finally we’ll add net income here okay and then i always like to have for this type of analysis a table view as well so in this table we’ll add

All three together so we can see them side by side so income expenses and net income and then also want to look at that as trailing 12-month and we’ll look at from there we can quickly see we have our trailing 12-month analysis done this is particularly useful if you have more than two years of data as the earliest time period january is going to be looking at

The previous december or january back to the previous february so if you don’t have data back that far it can skew the analysis so in here we can see we can quickly identify a couple trends so our income was trending down through the you know spring and summer time trying to back up into the summer and that we’ve taken a big jump up through the end of the year we

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Can also see our expenses i’ve been trending upward throughout the end of 2019 and we can use that to drill down deeper and see why is that the case it might be something like hiring additional personnel or additional effects expenditures one other really useful part of our – and doing this type of analysis is we can also do a trailing 12 months on custom metrics

Which are things that we’ve calculated in the system and that would be done exactly the same so we want to add a custom metric in this case we’ll take a look at working capital so here’s the working capital for this company and we want to look at that also as a bar and we want it as a trailing 12-month analysis near the last month and we want to zero the access

So we quickly see our working capital has been trending up throughout most of the year and then towards the end of the year has started to trend down but is now recovering so a very quick way to see trend analysis within your financial numbers and a very useful metric to track so we recommend tracking a lot of financial ratios as a trailing 12-month analysis so

Until next time this is john and look forward to seeing you all soon

Transcribed from video
How to build a trailing twelve months (TTM) analysis in under 5 minutes By Malartu Analytics