Return on Assets (ROA)
since 2016
Calculation
Trade Desk Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2025 | 7.20% | = | 100 | × | 443,304) | ÷ | 6,153,220) |
| 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: 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), 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 Return on Assets (ROA) exhibited a generally increasing trend over the observed period, though with notable fluctuations. Initial values were relatively modest, increasing significantly before experiencing a decline and subsequent recovery.
- Overall Trend
- From 2016 to 2020, ROA demonstrated a clear upward trajectory, rising from 3.81% to a peak of 8.80% in 2020. This suggests improving efficiency in utilizing assets to generate profit during this timeframe. However, 2021 saw a substantial decrease to 3.85%, followed by a further decline to 1.22% in 2022. The ROA then began to recover, reaching 3.66% in 2023 and continuing to improve to 6.43% in 2024, and 7.20% in 2025.
- Peak Performance
- The highest ROA was recorded in 2020 at 8.80%. This coincided with a significant increase in net income, indicating a particularly profitable year relative to the asset base. The substantial growth in net income during 2020 appears to be the primary driver of this peak.
- Recent Performance (2022-2025)
- The period from 2022 to 2025 shows a recovery in ROA after the low point in 2022. While not reaching the 2020 peak, the consistent increase from 1.22% to 7.20% suggests a return to more efficient asset utilization. This recovery is linked to increases in net income, while total assets also continued to grow, albeit at a slower rate than net income.
- Relationship to Net Income and Total Assets
- The fluctuations in ROA closely mirror changes in net income. The decline in 2021 and 2022 corresponds with decreases in net income. Total assets consistently increased throughout the period, but the impact on ROA was moderated by the corresponding changes in net income. The substantial asset growth did not always translate into proportional increases in profitability, particularly evident in 2022.
In conclusion, the ROA demonstrates a dynamic relationship with both net income and total assets. While a general upward trend is observable over the entire period, significant short-term variations highlight the importance of considering underlying profitability factors when assessing asset utilization efficiency.
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Comparison to Competitors
Trade Desk Inc., ROA, long-term trends, comparison to competitors
| Trade Desk Inc. | Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | Walt Disney Co. | |
|---|---|---|---|---|---|---|
| Dec 31, 2025 | 7.20% | 22.20% | 7.34% | 16.52% | 19.75% | 6.28% |
| Dec 31, 2024 | 6.43% | 22.24% | 6.08% | 22.59% | 16.24% | 2.53% |
| Dec 31, 2023 | 3.66% | 18.34% | 5.81% | 17.03% | 11.10% | 1.15% |
| Dec 31, 2022 | 1.22% | 16.42% | 2.09% | 12.49% | 9.24% | 1.54% |
| Dec 31, 2021 | 3.85% | 21.16% | 5.13% | 23.72% | 11.48% | 0.98% |
| Dec 31, 2020 | 8.80% | 12.60% | 3.85% | 18.29% | 7.03% | -1.42% |
| Dec 31, 2019 | 6.27% | 12.45% | 4.96% | 13.86% | 5.49% | 5.70% |
| Dec 31, 2018 | 7.88% | 13.20% | 4.66% | 22.72% | 4.66% | 12.78% |
| Dec 31, 2017 | 6.37% | 6.42% | 12.15% | 18.85% | 2.94% | 9.37% |
| Dec 31, 2016 | 3.81% | 11.63% | 4.82% | 15.73% | 1.37% | 10.20% |
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), 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, 2025 | 7.20% | 15.84% |
| Dec 31, 2024 | 6.43% | 15.44% |
| Dec 31, 2023 | 3.66% | 11.78% |
| Dec 31, 2022 | 1.22% | 9.04% |
| Dec 31, 2021 | 3.85% | 12.99% |
| Dec 31, 2020 | 8.80% | 8.04% |
| Dec 31, 2019 | 6.27% | 8.75% |
| Dec 31, 2018 | 7.88% | 11.09% |
| Dec 31, 2017 | 6.37% | 10.42% |
| Dec 31, 2016 | 3.81% | 9.24% |
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), 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, 2025 | 7.20% | 11.30% |
| Dec 31, 2024 | 6.43% | 10.40% |
| Dec 31, 2023 | 3.66% | 7.93% |
| Dec 31, 2022 | 1.22% | 5.42% |
| Dec 31, 2021 | 3.85% | 8.36% |
| Dec 31, 2020 | 8.80% | 4.70% |
| Dec 31, 2019 | 6.27% | 6.30% |
| Dec 31, 2018 | 7.88% | 7.37% |
| Dec 31, 2017 | 6.37% | 9.22% |
| Dec 31, 2016 | 3.81% | 6.13% |
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), 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).