LTM

Abbreviation with 2 meanings

LTM
Stands forLong-term memory
Meanings2
CategoriesScience & Engineering, Business & Finance

LTM has two meanings. It stands for Long-term memory (psychology) or Last twelve months (finance).

Meanings of LTM at a glance

#LTM stands forContext
1Long-term memoryScience & Engineering › Psychology
2Last twelve monthsBusiness & Finance › Finance

1. Long-term memory

Science & Engineering · Psychology Abbreviations

Memory system that stores information for long periods, from minutes to a lifetime, with no known capacity limit. It includes explicit memories of facts (semantic) and personal events (episodic), and implicit memories such as skills and habits.

Example: Spaced practice moved the vocabulary into LTM far better than cramming did.

Endel Tulving distinguished episodic and semantic memory in 1972. The case of Henry Molaison (patient H.M.), who lost the ability to form new long-term memories after brain surgery in 1953, showed the hippocampus's central role. Retrieval practice and sleep strengthen long-term retention.

2. Last twelve months

Business & Finance · Finance Abbreviations

Most recent twelve-month period of a company's financial results, the version preferred in investment banking, credit agreements and M&A to show current performance rather than the last fiscal year. It is equivalent to trailing twelve months (TTM).

Example: The target's LTM EBITDA of $85 million supports leverage of about 5x.

Bankers typically present valuation multiples on both LTM and NTM (next twelve months) bases. Loan covenants often test leverage against LTM EBITDA, sometimes with negotiated add-backs. TTM is the more common term on retail investment websites.

More psychology abbreviations

  • IQ – Intelligence quotient
  • IRT – Item response theory
  • IV – Independent variable
  • LOC – Locus of control
  • MBTI – Myers-Briggs Type Indicator
  • MMPI – Minnesota Multiphasic Personality Inventory
  • MSCEIT – Mayer-Salovey-Caruso Emotional Intelligence Test
  • NEO PI-R – NEO Personality Inventory, Revised

See all 62 psychology abbreviations →

More finance abbreviations

  • IRR – Internal rate of return
  • LBO – Leveraged buyout
  • LOI – Letter of intent
  • LP – Limited partner
  • M&A – Mergers and acquisitions
  • MAC – Material adverse change
  • MBO – Management buyout
  • MIRR – Modified internal rate of return

See all 88 finance abbreviations →