Now, let’s calculate the target’s last-twelve-month (“LTM”) income statement. To do so, we simply take the last fiscal year results, add the most recent stub period, and subtract the same stub period from twelve months earlier.
We have entered our LTM inputs taken from 10-Q SEC filings to the right of the income statement (you may have to scroll right to see them), and added a LTM column to the income statement. Several key metrics, including valuation and capital structure multiples, are calculated using LTM figures.
