If a company earned 1,000 revenue and 200 EBITDA for 2050, and 200 revenue with 50 EBITDA in Jan–Mar 2050, and 300 revenue with 75 EBITDA in Jan–Mar 2051, what are the Trailing Twelve Months revenue and EBITDA as of March 31, 2051?

• A. Revenue 1100; EBITDA 225
• B. Revenue 1000; EBITDA 200
• C. Revenue 1300; EBITDA 275
• D. Revenue 1200; EBITDA 250

Answer: (A)

Trailing twelve months ends up being the most recent 12 months, which for March 31, 2051 means Apr 1, 2050 through Mar 31, 2051.Use the available data to fill in the missing months.

From the full year 2050 we have Revenue 1,000 and EBITDA 200. Jan–Mar 2050 accounted for 200 revenue and 50 EBITDA, so Apr–Dec 2050 must be 1,000 − 200 = 800 in revenue and 200 − 50 = 150 in EBITDA.

For Jan–Mar 2051, revenue is 300 and EBITDA is 75.

Add the appropriate periods: Revenue = 800 (Apr–Dec 2050) + 300 (Jan–Mar 2051) = 1,100. EBITDA = 150 (Apr–Dec 2050) + 75 (Jan–Mar 2051) = 225.

Therefore, the Trailing Twelve Months figures as of March 31, 2051 are Revenue 1,100 and EBITDA 225.