Return on Equity (ROE)
since 2016
Calculation
Trade Desk Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | 13.33% | = | 100 | × | 393,076) | ÷ | 2,949,145) |
| Dec 31, 2023 | 8.27% | = | 100 | × | 178,940) | ÷ | 2,164,219) |
| Dec 31, 2022 | 2.52% | = | 100 | × | 53,385) | ÷ | 2,115,339) |
| Dec 31, 2021 | 9.02% | = | 100 | × | 137,762) | ÷ | 1,527,306) |
| Dec 31, 2020 | 23.92% | = | 100 | × | 242,317) | ÷ | 1,013,145) |
| Dec 31, 2019 | 17.68% | = | 100 | × | 108,318) | ÷ | 612,517) |
| Dec 31, 2018 | 22.34% | = | 100 | × | 88,140) | ÷ | 394,567) |
| Dec 31, 2017 | 20.68% | = | 100 | × | 50,798) | ÷ | 245,583) |
| Dec 31, 2016 | 12.46% | = | 100 | × | 20,482) | ÷ | 164,380) |
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 financial performance over the reported periods indicates several noteworthy trends in profitability, equity growth, and return on equity (ROE).
- Net Income
- There has been a general upward trajectory in net income from 2016 through 2024, with the amount increasing from approximately 20.5 million USD to 393 million USD by the end of 2024. However, the growth pattern shows volatility; notable peaks occurred in 2020 and 2024, with a significant dip observed in 2022 when net income fell to roughly 53.4 million USD before rebounding strongly in subsequent years.
- Stockholders' Equity
- The stockholders' equity exhibits a consistent and substantial increase throughout the period, growing from about 164 million USD in 2016 to nearly 2.95 billion USD by 2024. This steady accumulation of equity suggests ongoing capital retention and/or infusion, indicating strengthened financial stability and capacity for investment support.
- Return on Equity (ROE)
- ROE shows considerable fluctuation, initially climbing from 12.46% in 2016 to a peak of 23.92% in 2020, reflecting efficient generation of profits relative to equity. However, post-2020, ROE declines sharply, reaching a low of 2.52% in 2022. Thereafter, it gradually recovers to 13.33% in 2024, signaling some restoration in profitability efficiency but not returning to earlier peak performance levels.
In summary, the period reflects strong growth in net income and stockholders' equity, albeit with notable fluctuations in profitability efficiency as measured by ROE. The dips in net income and ROE around 2021-2022 suggest challenges during those years, followed by recovery phases. The sustained increase in equity indicates a solid capital base potentially supporting future expansion.
Comparison to Competitors
Trade Desk Inc., ROE, 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 | 13.33% | 30.80% | 32.61% | 18.92% | 34.14% | 35.21% | 4.94% |
| Dec 31, 2023 | 8.27% | 26.04% | 41.11% | 18.61% | 25.53% | 26.27% | 2.37% |
| Dec 31, 2022 | 2.52% | 23.41% | 55.43% | 6.63% | 18.45% | 21.62% | 3.31% |
| Dec 31, 2021 | 9.02% | 30.22% | 33.12% | 14.73% | 31.53% | 32.28% | 2.25% |
| Dec 31, 2020 | 23.92% | 18.09% | 13.53% | 11.66% | 22.72% | 24.96% | -3.43% |
| Dec 31, 2019 | 17.68% | 17.05% | 5.30% | 15.78% | 18.29% | 24.62% | 12.44% |
| Dec 31, 2018 | 22.34% | 17.30% | 3.39% | 16.38% | 26.28% | 23.12% | 25.83% |
| Dec 31, 2017 | 20.68% | 8.30% | 25.32% | 33.11% | 21.43% | 15.60% | 21.74% |
| Dec 31, 2016 | 12.46% | 14.01% | 8.77% | 16.12% | 17.26% | 6.97% | 21.71% |
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 Sector (Media & Entertainment)
Trade Desk Inc., ROE, long-term trends, comparison to sector (media & entertainment)
| Trade Desk Inc. | Media & Entertainment | |
|---|---|---|
| Dec 31, 2024 | 13.33% | 26.83% |
| Dec 31, 2023 | 8.27% | 21.58% |
| Dec 31, 2022 | 2.52% | 17.17% |
| Dec 31, 2021 | 9.02% | 23.87% |
| Dec 31, 2020 | 23.92% | 14.86% |
| Dec 31, 2019 | 17.68% | 15.69% |
| Dec 31, 2018 | 22.34% | 18.80% |
| Dec 31, 2017 | 20.68% | 18.65% |
| Dec 31, 2016 | 12.46% | 15.22% |
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., ROE, long-term trends, comparison to industry (communication services)
| Trade Desk Inc. | Communication Services | |
|---|---|---|
| Dec 31, 2024 | 13.33% | 23.70% |
| Dec 31, 2023 | 8.27% | 19.18% |
| Dec 31, 2022 | 2.52% | 13.75% |
| Dec 31, 2021 | 9.02% | 20.51% |
| Dec 31, 2020 | 23.92% | 11.57% |
| Dec 31, 2019 | 17.68% | 14.87% |
| Dec 31, 2018 | 22.34% | 17.13% |
| Dec 31, 2017 | 20.68% | 23.01% |
| Dec 31, 2016 | 12.46% | 15.74% |
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).