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Revenue growth simply explained

Written by Oscar Leistikow | Sep 08, 2021

Table of contents

  1. What is sales growth (TTM)?
  2. How is sales growth (TTM) calculated?
  3. What does sales growth (TTM) mean?

What is sales growth (TTM)?

Sales growth (TTM) compares the sum of all revenues of a company, e.g. for its products or services, within the last 12 months with the sum of all revenues of the previous 12 months. TTM is the abbreviation for “Trailing Twelve Months”. By taking the last 12 months into account, the most recent figures from the last 4 quarterly reports are always taken into account.

How is sales growth (TTM) calculated?

The total sales of the last four quarters are divided by the total sales of the respective quarters of the previous year.

Calculate sales growth (TTM):

To illustrate this, the calculation of the Daimler share's sales growth (TTM) as of September 13, 2024 is shown:

According to the High Growth Investing strategy, the following points are awarded for the key figure sales growth (TTM):

Daimler therefore receives 0 points as its sales growth (TTM) is below 20%.

What does sales growth (TTM) mean?

Sales growth (TTM) can be used to make a statement about how quickly the company's sales are growing. Such a comparison is particularly suitable for comparing companies from the same sector.

When looking at sales growth, you should also consider the extent to which the growth was organic or due to acquisitions of other companies. In addition, turnover (TTM) should always be considered. Small and fast-growing companies in particular can show high sales growth, but sales can still be very small in absolute terms.

Table of companies with the highest sales growth (TTM) in the S&P500

This table shows the companies with the highest revenue growth of the S&P 500. For a daily updated table, click here!

Stock Revenue growth (TTM)
NVIDIA 208.27%
Super Micro Computer, Inc. 109.77%
Las Vegas Sands Corp. 68.48%
Extra Space Storage 56.23%
Northern Trust 48.89%
Wynn Resorts 44.65%
Bank of New York Mellon 39.09%
Xylem Inc. 38.27%
Carnival 34.03%
Axon Enterprise Inc 32.59%