Analysis of Property, Plant and Equipment
Paying user area
Try for free
Trade Desk Inc. pages available for free this week:
- Statement of Comprehensive Income
- Cash Flow Statement
- Common-Size Income Statement
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Capital Asset Pricing Model (CAPM)
- Selected Financial Data since 2016
- Return on Assets (ROA) since 2016
- Total Asset Turnover since 2016
- Price to Earnings (P/E) since 2016
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Trade Desk Inc. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Property, Plant and Equipment Disclosure
Trade Desk Inc., balance sheet: property, plant and equipment
US$ in thousands
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Property and equipment experienced substantial growth over the five-year period. Significant increases are observed across most asset categories, with construction in progress demonstrating the most dramatic change in recent years. Accumulated depreciation also increased consistently, reflecting the ongoing use of these assets. However, the net book value of property and equipment ultimately shows a strong upward trend, particularly from 2024 onwards.
- Computer and Networking Equipment
- This category exhibits consistent and significant growth, increasing from US$53.587 million in 2021 to US$284.056 million in 2025. This represents a more than five-fold increase, suggesting substantial investment in technology infrastructure.
- Purchased Software
- Purchased software remained relatively stable between 2021 and 2023, fluctuating around US$10 million. A notable increase to US$14.016 million occurred in 2024, followed by a substantial decrease to US$6.332 million in 2025. This suggests potential software upgrades in 2024 followed by write-downs or disposals in 2025.
- Furniture and Fixtures
- Furniture and fixtures demonstrate steady, albeit moderate, growth throughout the period, increasing from US$22.156 million to US$36.809 million. This indicates a consistent, but less aggressive, investment in office and operational infrastructure.
- Construction in Progress
- Construction in progress showed initial growth from 2021 to 2022, followed by a decrease in 2023. However, a substantial increase is observed in 2024 and continues into 2025, reaching US$117.857 million. This suggests significant new construction projects initiated in 2024 and ongoing in 2025.
- Leasehold Improvements
- Leasehold improvements consistently increased over the period, rising from US$112.014 million to US$213.978 million. This indicates ongoing investment in leased properties.
- Gross Property and Equipment
- The gross value of property and equipment more than tripled, increasing from US$204.746 million in 2021 to US$659.032 million in 2025. This growth is driven by increases in all major asset categories.
- Accumulated Depreciation
- Accumulated depreciation increased steadily throughout the period, from US$68.890 million in 2021 to US$262.213 million in 2025. This is consistent with the growth in gross property and equipment and reflects the ongoing consumption of the economic benefits of these assets.
- Net Property and Equipment
- The net book value of property and equipment increased from US$135.856 million in 2021 to US$396.819 million in 2025. While there was a slight decrease in 2023, the overall trend is strongly upward, indicating a growing asset base contributing to the company’s operations. The most significant increase occurred between 2023 and 2025.
Asset Age Ratios (Summary)
Trade Desk Inc., asset age ratios
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The average age ratio of property, plant, and equipment exhibited an increasing trend from 2021 to 2023, followed by a decrease in 2025. This suggests a shift in the composition and age profile of the asset base over the analyzed period.
- Average Age Ratio
- The average age ratio increased from 33.65% in 2021 to 49.55% in 2023, indicating a growing proportion of assets nearing the end of their useful lives relative to their original cost. A subsequent decline to 39.79% in 2025 suggests recent asset acquisitions or disposals that lowered the overall average age.
- Estimated Total Useful Life
- The estimated total useful life fluctuated between 5 and 7 years throughout the period. The variation may reflect differing depreciation policies applied to different asset classes, or revisions in estimated useful lives as assets are reassessed. A shift from 7 years in 2022 to 5 years in 2023, and then back to 7 years in 2025, warrants further investigation into the underlying reasons for these changes.
- Estimated Age & Remaining Life
- The estimated age, representing the time elapsed since purchase, remained consistently at 3 years from 2022 to 2025. This indicates a relatively stable pattern of recent asset acquisitions. The estimated remaining life mirrored this pattern, fluctuating between 3 and 4 years, aligning with the changes in estimated total useful life. The consistency in these values suggests a predictable depreciation cycle for recently acquired assets.
The interplay between the average age ratio, estimated total useful life, and remaining life suggests a dynamic asset management strategy. The increase in the average age ratio through 2023, coupled with a relatively stable age of recently acquired assets, implies that older assets are contributing a larger proportion to the overall asset base. The subsequent decrease in the average age ratio in 2025 indicates a potential renewal or expansion of the asset base.
Average Age
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Accumulated depreciation | ||||||
| Property and equipment, gross | ||||||
| Asset Age Ratio | ||||||
| Average age1 | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
2025 Calculations
1 Average age = 100 × Accumulated depreciation ÷ Property and equipment, gross
= 100 × ÷ =
The values associated with property, plant, and equipment demonstrate a consistent pattern of growth and evolving depreciation. Accumulated depreciation has increased steadily over the observed period, while gross property and equipment values have also risen, though with more significant fluctuations. The average age ratio exhibits a distinct trend, initially increasing before decreasing in the most recent period.
- Accumulated Depreciation
- Accumulated depreciation increased from US$68,890 thousand in 2021 to US$262,213 thousand in 2025. This represents a substantial cumulative increase, indicating a growing proportion of the company’s fixed assets have been expensed through depreciation. The rate of increase appears to accelerate between 2021 and 2023, then moderates slightly in subsequent years, though remaining positive.
- Gross Property and Equipment
- Gross property and equipment values show an overall upward trend, rising from US$204,746 thousand in 2021 to US$659,032 thousand in 2025. However, the growth is not linear. A significant increase is observed between 2023 and 2024, more than doubling the prior year’s growth. This suggests substantial investment in fixed assets during 2024. The increase from 2021 to 2022 is also notable, but less pronounced than the 2023-2024 jump.
- Average Age Ratio
- The average age ratio, expressed as a percentage, initially increased from 33.65% in 2021 to 49.55% in 2023. This indicates that, on average, the company’s fixed assets were becoming older relative to their original cost. However, in 2025, the ratio decreased to 39.79%. This decline suggests that recent acquisitions of new property and equipment are lowering the overall average age of the asset base, offsetting the effects of continued depreciation. The ratio in 2024 was 50.67%, representing the peak of the observed period.
The combination of increasing accumulated depreciation and gross property and equipment suggests ongoing investment in and utilization of fixed assets. The fluctuating average age ratio warrants further investigation to understand the implications of asset turnover and the efficiency of capital expenditure.
Estimated Total Useful Life
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
2025 Calculations
1 Estimated total useful life = Property and equipment, gross ÷ Depreciation expense
= ÷ =
Gross property and equipment values have demonstrated a consistent upward trajectory over the five-year period, increasing from US$204.746 million in 2021 to US$659.032 million in 2025. Simultaneously, depreciation expense has also risen, moving from US$34.2 million in 2021 to US$96 million in 2025. However, the estimated total useful life of these assets has fluctuated, exhibiting a pattern of increases and decreases.
- Gross Property and Equipment Growth
- The substantial growth in gross property and equipment suggests ongoing investment in assets. The increase is not linear, with a particularly significant jump between 2023 and 2024, and again between 2024 and 2025. This could indicate large-scale acquisitions or substantial internal development of assets during those periods.
- Depreciation Expense Trend
- The increasing depreciation expense is expected given the growth in the asset base. The rate of increase in depreciation expense appears to be accelerating, particularly from 2023 onwards, which is consistent with the larger additions to property and equipment. This suggests that a larger proportion of the asset base is now subject to depreciation.
- Estimated Useful Life Variability
- The estimated total useful life has varied between 5 and 7 years. It began at 6 years in 2021, increased to 7 years in 2022, decreased to 5 years in 2023, then rose to 6 years in 2024, and finally to 7 years in 2025. This fluctuation warrants further investigation. Changes in estimated useful life can significantly impact depreciation expense and, consequently, reported earnings. A decrease in estimated useful life accelerates depreciation, reducing net income, while an increase does the opposite. The reasons for these changes should be documented and justified, as they could relate to technological obsolescence, changes in usage patterns, or revisions in company policy.
The interplay between increasing asset values, rising depreciation, and fluctuating estimated useful lives suggests a dynamic asset management strategy. Continued monitoring of these trends is recommended to assess the impact on financial performance and to ensure the appropriateness of depreciation policies.
Estimated Age, Time Elapsed since Purchase
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
2025 Calculations
1 Time elapsed since purchase = Accumulated depreciation ÷ Depreciation expense
= ÷ =
Accumulated depreciation exhibits a consistently increasing trend over the five-year period. Depreciation expense also demonstrates an upward trajectory, though with some variation in the rate of increase. The reported time elapsed since purchase remains constant throughout the observed period.
- Accumulated Depreciation
- Accumulated depreciation increased significantly from US$68,890 thousand in 2021 to US$262,213 thousand in 2025. The largest absolute increase occurred between 2022 and 2023 (US$52,643 thousand), indicating a substantial portion of the asset base was depreciated during that year. The rate of increase appears to be accelerating, with the increase from 2024 to 2025 being US$47,200 thousand, a higher amount than the prior year’s increase.
- Depreciation Expense
- Depreciation expense rose from US$34,200 thousand in 2021 to US$96,000 thousand in 2025. The increase from 2021 to 2022 was US$7,800 thousand, followed by a larger increase of US$20,000 thousand from 2022 to 2023. The increase slowed to US$5,000 thousand from 2023 to 2024, but then increased substantially to US$29,000 thousand from 2024 to 2025. This suggests a potential increase in the value of newly acquired depreciable assets or a change in depreciation methods.
- Time Elapsed Since Purchase
- The reported time elapsed since purchase remained at three years for the entire period. This suggests that the company has not made significant new purchases of property, plant, and equipment during this timeframe, or that the reported age is consistently calculated from the same initial purchase date, regardless of subsequent acquisitions. The consistency in this metric, coupled with the increasing depreciation expense, implies a consistent depreciation schedule applied to a relatively stable asset base.
The consistent time elapsed since purchase, combined with the increasing accumulated depreciation and depreciation expense, suggests the company is systematically depreciating its existing asset base. The accelerating depreciation expense in the later years warrants further investigation to determine if it is due to increased asset acquisitions, changes in depreciation methods, or other factors.
Estimated Remaining Life
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
2025 Calculations
1 Estimated remaining life = Property and equipment, net ÷ Depreciation expense
= ÷ =
Property and equipment, net, exhibited a generally increasing trend over the five-year period, though with some fluctuation. Depreciation expense also increased consistently throughout the period. The estimated remaining life of these assets initially decreased, then increased in the most recent year observed.
- Property and Equipment, Net
- The net value of property and equipment increased from US$135,856 thousand in 2021 to US$396,819 thousand in 2025. A significant increase occurred between 2024 and 2025. There was a decrease from 2022 to 2023, suggesting potential asset disposals or impairments offsetting acquisitions during that period.
- Depreciation Expense
- Depreciation expense demonstrated a consistent upward trend, rising from US$34,200 thousand in 2021 to US$96,000 thousand in 2025. This increase correlates with the growth in the net value of property and equipment, indicating that new assets were placed in service and/or the existing asset base expanded. The rate of increase in depreciation expense accelerated in later years.
- Estimated Remaining Life
- The estimated remaining life of the property and equipment decreased from 4 years in 2021 and 2022 to 3 years in 2023. This suggests a potential reassessment of asset useful lives, possibly due to technological obsolescence or increased wear and tear. However, the estimated remaining life increased to 4 years in 2025. This could be due to recent asset acquisitions with longer useful lives, or a revision of depreciation policies.
The combination of increasing net property and equipment and increasing depreciation expense suggests continued investment in fixed assets. The fluctuation in estimated remaining life warrants further investigation to understand the underlying reasons for the changes and their potential impact on future depreciation charges.