Return on Equity (ROE)
since 2016
Calculation
Trade Desk Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2025 | 17.84% | = | 100 | × | 443,304) | ÷ | 2,484,391) |
| 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: 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 equity (ROE) exhibited a generally increasing trend from 2016 through 2020, followed by volatility and a subsequent recovery. A significant fluctuation is observed between 2020 and 2023, before returning to a growth trajectory.
- Initial Growth (2016-2020)
- From 2016 to 2020, ROE increased from 12.46% to 23.92%. This period demonstrates a consistent improvement in profitability relative to shareholder equity. The increase suggests the company was becoming more efficient in generating profits from its equity base.
- Significant Decline (2020-2022)
- A substantial decrease in ROE occurred between 2020 and 2022, falling from 23.92% to 2.52%. This decline coincided with a rapid increase in stockholders’ equity, while net income experienced a considerable reduction in 2022. The disproportionate growth in equity relative to net income significantly lowered the ROE.
- Recovery and Continued Growth (2022-2025)
- Following the low point in 2022, ROE began to recover, reaching 8.27% in 2023. This recovery continued through 2025, with ROE reaching 17.84%. This improvement is attributable to a substantial increase in net income, coupled with a more moderate growth in stockholders’ equity. The 2024 and 2025 values suggest a return to improved profitability relative to equity.
- Net Income and Equity Relationship
- The fluctuations in ROE are closely tied to the relationship between net income and stockholders’ equity. Periods of strong net income growth, such as 2017-2020, correlate with increasing ROE. Conversely, periods where equity growth outpaces net income growth, as seen in 2021-2022, result in a decreased ROE. The recent trend indicates a rebalancing of this relationship, favoring net income growth.
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Comparison to Competitors
Trade Desk Inc., ROE, long-term trends, comparison to competitors
| Trade Desk Inc. | Alphabet Inc. | Comcast Corp. | Meta Platforms Inc. | Netflix Inc. | Walt Disney Co. | |
|---|---|---|---|---|---|---|
| Dec 31, 2025 | 17.84% | 31.83% | 20.64% | 27.83% | 41.26% | 11.29% |
| Dec 31, 2024 | 13.33% | 30.80% | 18.92% | 34.14% | 35.21% | 4.94% |
| Dec 31, 2023 | 8.27% | 26.04% | 18.61% | 25.53% | 26.27% | 2.37% |
| Dec 31, 2022 | 2.52% | 23.41% | 6.63% | 18.45% | 21.62% | 3.31% |
| Dec 31, 2021 | 9.02% | 30.22% | 14.73% | 31.53% | 32.28% | 2.25% |
| Dec 31, 2020 | 23.92% | 18.09% | 11.66% | 22.72% | 24.96% | -3.43% |
| Dec 31, 2019 | 17.68% | 17.05% | 15.78% | 18.29% | 24.62% | 12.44% |
| Dec 31, 2018 | 22.34% | 17.30% | 16.38% | 26.28% | 23.12% | 25.83% |
| Dec 31, 2017 | 20.68% | 8.30% | 33.11% | 21.43% | 15.60% | 21.74% |
| Dec 31, 2016 | 12.46% | 14.01% | 16.12% | 17.26% | 6.97% | 21.71% |
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., ROE, long-term trends, comparison to sector (media & entertainment)
| Trade Desk Inc. | Media & Entertainment | |
|---|---|---|
| Dec 31, 2025 | 17.84% | 27.23% |
| Dec 31, 2024 | 13.33% | 26.71% |
| Dec 31, 2023 | 8.27% | 21.24% |
| Dec 31, 2022 | 2.52% | 16.57% |
| Dec 31, 2021 | 9.02% | 23.65% |
| Dec 31, 2020 | 23.92% | 14.92% |
| Dec 31, 2019 | 17.68% | 16.36% |
| Dec 31, 2018 | 22.34% | 20.24% |
| Dec 31, 2017 | 20.68% | 17.88% |
| Dec 31, 2016 | 12.46% | 16.09% |
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., ROE, long-term trends, comparison to industry (communication services)
| Trade Desk Inc. | Communication Services | |
|---|---|---|
| Dec 31, 2025 | 17.84% | 25.08% |
| Dec 31, 2024 | 13.33% | 23.56% |
| Dec 31, 2023 | 8.27% | 18.91% |
| Dec 31, 2022 | 2.52% | 13.30% |
| Dec 31, 2021 | 9.02% | 20.32% |
| Dec 31, 2020 | 23.92% | 11.52% |
| Dec 31, 2019 | 17.68% | 15.27% |
| Dec 31, 2018 | 22.34% | 17.89% |
| Dec 31, 2017 | 20.68% | 22.84% |
| Dec 31, 2016 | 12.46% | 16.35% |
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).