Return on Assets (ROA)
since 2016
Calculation
Trade Desk Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | 6.43% | = | 100 | × | 393,076) | ÷ | 6,111,951) |
| Dec 31, 2023 | 3.66% | = | 100 | × | 178,940) | ÷ | 4,888,687) |
| Dec 31, 2022 | 1.22% | = | 100 | × | 53,385) | ÷ | 4,380,679) |
| Dec 31, 2021 | 3.85% | = | 100 | × | 137,762) | ÷ | 3,577,340) |
| Dec 31, 2020 | 8.80% | = | 100 | × | 242,317) | ÷ | 2,753,645) |
| Dec 31, 2019 | 6.27% | = | 100 | × | 108,318) | ÷ | 1,728,761) |
| Dec 31, 2018 | 7.88% | = | 100 | × | 88,140) | ÷ | 1,117,872) |
| Dec 31, 2017 | 6.37% | = | 100 | × | 50,798) | ÷ | 797,164) |
| Dec 31, 2016 | 3.81% | = | 100 | × | 20,482) | ÷ | 537,596) |
Based on: 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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
1 US$ in thousands
The analysis of the financial data reveals notable trends in net income, total assets, and return on assets (ROA) over the period from 2016 to 2024.
- Net Income
- Net income shows a general upward trajectory with fluctuations. Starting at approximately $20.5 million in 2016, it more than doubled in 2017 and continued a strong growth trend until peaking at $242.3 million in 2020. However, there was a significant drop to $137.8 million in 2021 followed by a sharper decline to $53.4 million in 2022. The subsequent years saw a recovery with net income rising to $178.9 million in 2023 and reaching a new high of $393.1 million in 2024, indicating strong financial performance and resilience in later periods.
- Total Assets
- Total assets consistently increased throughout the entire period. Starting from roughly $538 million in 2016, assets grew steadily each year, reaching about $6.11 billion by 2024. This reflects a substantial expansion of the company's asset base, implying ongoing investments, growth initiatives, or acquisitions. The consistent increase in total assets signals a solid foundation for scaling operations and a greater capacity to generate returns.
- Return on Assets (ROA)
- The ROA percentage shows variability and does not consistently track with the growth in net income or total assets. ROA increased from 3.81% in 2016 to a peak of 8.8% in 2020, suggesting improved efficiency in asset utilization during this period. However, the next three years showed a marked decline to 1.22% in 2022, before recovering to 6.43% in 2024. This volatility in ROA indicates fluctuations in how effectively the company leveraged its growing asset base to generate profits, with the dip possibly reflecting challenges in operational efficiency or changes in asset composition during those years.
In summary, the data illustrates a growing company with increasing asset levels and overall improving net income, albeit with some periods of profit volatility. The fluctuating ROA signals that while the asset base expanded robustly, the efficiency of asset use experienced swings, highlighting areas for operational focus to sustain profitability consistent with asset growth.
Comparison to Competitors
Trade Desk Inc., ROA, long-term trends, comparison to competitors
| Trade Desk Inc. | Alphabet Inc. | Charter Communications Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | Walt Disney Co. | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | 6.43% | 22.24% | 3.39% | 6.08% | 22.59% | 16.24% | 2.53% |
| Dec 31, 2023 | 3.66% | 18.34% | 3.10% | 5.81% | 17.03% | 11.10% | 1.15% |
| Dec 31, 2022 | 1.22% | 16.42% | 3.50% | 2.09% | 12.49% | 9.24% | 1.54% |
| Dec 31, 2021 | 3.85% | 21.16% | 3.27% | 5.13% | 23.72% | 11.48% | 0.98% |
| Dec 31, 2020 | 8.80% | 12.60% | 2.23% | 3.85% | 18.29% | 7.03% | -1.42% |
| Dec 31, 2019 | 6.27% | 12.45% | 1.13% | 4.96% | 13.86% | 5.49% | 5.70% |
| Dec 31, 2018 | 7.88% | 13.20% | 0.84% | 4.66% | 22.72% | 4.66% | 12.78% |
| Dec 31, 2017 | 6.37% | 6.42% | 6.75% | 12.15% | 18.85% | 2.94% | 9.37% |
| Dec 31, 2016 | 3.81% | 11.63% | 2.36% | 4.82% | 15.73% | 1.37% | 10.20% |
Based on: 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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
Comparison to Sector (Media & Entertainment)
Trade Desk Inc., ROA, long-term trends, comparison to sector (media & entertainment)
| Trade Desk Inc. | Media & Entertainment | |
|---|---|---|
| Dec 31, 2024 | 6.43% | 14.15% |
| Dec 31, 2023 | 3.66% | 10.80% |
| Dec 31, 2022 | 1.22% | 8.38% |
| Dec 31, 2021 | 3.85% | 11.83% |
| Dec 31, 2020 | 8.80% | 7.30% |
| Dec 31, 2019 | 6.27% | 7.67% |
| Dec 31, 2018 | 7.88% | 9.34% |
| Dec 31, 2017 | 6.37% | 9.68% |
| Dec 31, 2016 | 3.81% | 7.71% |
Based on: 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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).
Comparison to Industry (Communication Services)
Trade Desk Inc., ROA, long-term trends, comparison to industry (communication services)
| Trade Desk Inc. | Communication Services | |
|---|---|---|
| Dec 31, 2024 | 6.43% | 9.96% |
| Dec 31, 2023 | 3.66% | 7.62% |
| Dec 31, 2022 | 1.22% | 5.29% |
| Dec 31, 2021 | 3.85% | 8.04% |
| Dec 31, 2020 | 8.80% | 4.54% |
| Dec 31, 2019 | 6.27% | 5.92% |
| Dec 31, 2018 | 7.88% | 6.82% |
| Dec 31, 2017 | 6.37% | 8.98% |
| Dec 31, 2016 | 3.81% | 5.72% |
Based on: 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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31).