"TTM vs. YoY vs. QoQ: A Complete Guide to Revenue and EPS Growth Analysis

Understanding when to use Trailing Twelve Months (TTM), Year-over-Year (YoY), and Quarter-over-Quarter (QoQ) growth comparisons—especially for revenue and EPS (earnings per share)—is vital for meaningful financial analysis. Below is a comprehensive guide covering what they are, how they differ, typical use cases, their popularity, and who typically uses each metric.

Definitions & Calculation

When to Use Each Growth Metric

TTM (Trailing Twelve Months)

• Best for: Smoothing out short-term volatility and seasonality; shows the most up-to-date, cumulative trend.

• Use when:

  • You want to capture a company's "current pace" using the freshest annual data, not tied to fiscal-year cutoff.

  • Seasonality may skew quarterly or even annual comparisons.

  • Analyzing ongoing growth trajectory or financial ratios (e.g., P/E TTM).

• Avoid when: You need to focus on very recent developments or uncover abrupt changes not captured in a 12-month average.

• Popular with: Long-term investors, analysts seeking up-to-date fundamentals, financial media and research platforms1234.

YoY (Year-over-Year)

• Best for: Assessing real growth after removing seasonal effects; reveals structural, long-term trends.

• Use when:

  • Comparing how performance this period (year or quarter) stacks up to the same period last year.

  • Evaluating strength, cyclicality, and durability of business growth.

• Avoid when: Company or industry is undergoing rapid structural change, or seasonality has recently shifted.

• Popular with: Institutional analysts, financial press, companies in earnings releases, retail investors studying trend consistency5678.

QoQ (Quarter-over-Quarter)

• Best for: Spotting momentum, short-term improvements/deteriorations, and monitoring immediate effects of recent strategy changes.

• Use when:

  • Tracking early signals of acceleration or slowdown.

  • Managing internal goals, initiatives, and operational adjustments.

  • Assessing the impact of unusual, recent events (e.g., product launches).

• Avoid when: Business is highly seasonal—QoQ might be misleading compared to prior-year quarters.

• Popular with: Company management, active traders, operational teams, analysts focused on short-term results91087.

Popularity Ranking

Who Uses Each Metric

• YoY: Research analysts, institutional investors, media, rating agencies—clear industry standard for reporting and benchmarking.

• TTM: Professional analysts, buy-and-hold investors, data providers, online financial platforms—used to calculate most ratios (e.g., TTM EPS, TTM revenue growth).

• QoQ: Company management, stock traders, short-horizon strategists—used for tactical response, news analysis, and quarterly performance highlights.

Quick Comparative Table

Key Insights & Caveats

• TTM smooths out seasonal swings: helps “average out” odd quarters, but may lag short-term shifts123.

• YoY neutralizes seasonal effects: the gold standard for public results; missed by short Q/Q spikes, but great for big-picture growth567.

• QoQ is immediate, but can be noisy: use it for tactical monitoring and intra-year changes, with caution in seasonal industries978.

Summary

• YoY: Most popular, ideal for removing seasonality—use for headline results and benchmarking.

• TTM: Excellent for updated year-on-year trends and ratios—favored for up-to-date comparison and longer-term perspective.

• QoQ: Best for quick momentum checks and strategy shifts—valuable, but must account for possible seasonal distortion.

For robust analysis, investors and analysts often use multiple metrics together: YoY for the “big picture,” TTM for nuanced trendlines, and QoQ for tactical signal-checking875.