Trade Desk Inc. (NASDAQ:TTD)

Total Asset Turnover

The total asset turnover ratio shows a consistent upward trend from 2020 to 2024. The reported ratio increases steadily from 0.3 in 2020 to 0.4 in 2023 and remains stable at 0.4 in 2024. The adjusted ratio follows a similar pattern, rising from 0.31 in 2020 to 0.41 in 2024. This indicates improving efficiency in using assets to generate revenue over the years.

Current Ratio

The current ratio demonstrates moderate fluctuations but an overall increasing trend. It starts at 1.57 in 2020, climbs to 1.9 by 2022, dips slightly to 1.72 in 2023, and then recovers to 1.86 in 2024. Both reported and adjusted figures mirror this pattern, suggesting relatively strong and stable short-term liquidity throughout the period.

Debt Ratios

While reported debt to equity and debt to capital ratios are not available, adjusted data indicate a decline in leverage from 2020 through 2024. Adjusted debt to equity decreases from 0.3 in 2020 to 0.11 in 2024, and adjusted debt to capital follows a similar pattern dropping from 0.23 to 0.10. This trend reflects a reduction in reliance on debt financing and an improvement in the company’s capital structure, lowering financial risk.

Financial Leverage

The financial leverage ratio shows some variability but a general decline overall. Reported financial leverage reduces from 2.72 in 2020 to 2.07 in 2024, with a peak at 2.26 in 2023. Adjusted leverage follows the same fluctuations, decreasing from 2.79 in 2020 to 2.16 in 2024. The gradual decline suggests a cautious approach to leveraging assets and potential increases in equity financing.

Net Profit Margin

The net profit margin experienced a significant decrease from 28.98% reported (25.65% adjusted) in 2020 to much lower levels in 2022—3.38% reported and 1.95% adjusted. Thereafter, it shows recovery, climbing to 16.08% (reported) and 12.93% (adjusted) by 2024. This volatility could indicate challenges affecting profitability around the mid-period with a subsequent rebound, although 2024 margins remain below the strong profitability levels seen in 2020.

Return on Equity (ROE)

ROE trends parallel the net profit margin’s pattern, starting at a high level in 2020 (23.92% reported, 22.1% adjusted), dipping significantly to 2.52% reported and 1.51% adjusted in 2022, then recovering to 13.33% and 11.58% respectively by 2024. The sharp mid-period decline and partial recovery reflect variability in overall profitability and shareholder returns, signaling fluctuating operational performance or changes in equity base.

Return on Assets (ROA)

ROA also follows a similar trajectory, falling from 8.8% reported (7.91% adjusted) in 2020 to 1.22% and 0.71% in 2022, then rising to 6.43% reported (5.36% adjusted) by 2024. This indicates a decline in the company’s effectiveness in utilizing its assets to generate profit in the middle periods, with an improving trend toward the end.

The financial data reveals a consistent upward trend in key business metrics over the five-year period from 2020 to 2024. Revenue demonstrates significant growth, rising from approximately US$836 million in 2020 to roughly US$2.44 billion in 2024. This represents nearly a threefold increase, indicating robust top-line expansion.

Total assets have also increased steadily, growing from about US$2.75 billion in 2020 to over US$6.11 billion in 2024. This expansion in the asset base suggests ongoing investments and possibly acquisition or scaling activities to support the business growth.

The reported total asset turnover ratio improved gradually from 0.30 in 2020 to 0.40 in 2023, maintaining that level in 2024. This upward movement implies improved efficiency in utilizing total assets to generate revenue, reaching a stable performance in the last reported year.

Looking at adjusted total assets, a similar rising pattern is visible, increasing from approximately US$2.71 billion in 2020 to about US$5.89 billion in 2024. The adjusted total asset turnover ratio follows a comparable trend to the reported ratio, increasing from 0.31 to 0.41 during the same period. This consistency reinforces the observation of enhanced asset utilization efficiency when adjusted for any asset modifications or reclassifications.

Overall, the data indicates strong revenue growth supported by a growing asset base, with increasingly efficient asset use as demonstrated by the improved asset turnover ratios. The stability of the asset turnover ratio at the higher level in recent years suggests that the company has reached a more optimized operational scale relative to its assets.

Revenue

Increased from US$836 million in 2020 to US$2.44 billion in 2024, showing steady and strong growth.

Total Assets

Grew from US$2.75 billion to US$6.11 billion, indicating ongoing investment and expansion.

Reported Total Asset Turnover

Improved from 0.30 to 0.40 and stabilized, reflecting better asset efficiency over time.

Adjusted Total Assets

Rose from US$2.71 billion to US$5.89 billion, consistent with reported asset growth.

Adjusted Total Asset Turnover

Increased from 0.31 to 0.41, showing enhanced efficiency after adjustments and a stable level in the latest years.

Current assets

The current assets demonstrate a consistent upward trend over the five-year period. Starting from approximately 2.31 billion US dollars at the end of 2020, current assets increased steadily each year, reaching about 5.34 billion US dollars by the end of 2024. This indicates a growing asset base available to cover short-term obligations.

Current liabilities

Current liabilities also exhibit a rising pattern throughout the same timeframe, increasing from roughly 1.47 billion US dollars in 2020 to nearly 2.87 billion US dollars by 2024. Although liabilities have grown, the rate of increase is generally lower than that of current assets, suggesting an improving liquidity position.

Reported current ratio

The reported current ratio fluctuates somewhat yet maintains an overall positive trajectory, indicating strong short-term financial health. It improved from 1.57 in 2020 to a peak of 1.90 in 2022, then slightly declined to 1.72 in 2023 before recovering to 1.86 by the end of 2024. These levels consistently exceed the threshold of 1, reflecting adequate current asset coverage of current liabilities.

Adjusted current assets

Adjusted current assets closely track the reported current assets, showing steady growth from approximately 2.32 billion US dollars in 2020 to about 5.35 billion US dollars in 2024. This adjustment suggests minor revisions or reclassifications that slightly increase the asset base but follow the same overall growth pattern.

Adjusted current ratio

The adjusted current ratio mirrors the behavior of the reported current ratio, moving from 1.57 in 2020 up to a peak of 1.90 in 2022, dipping to 1.72 in 2023, and increasing again to 1.86 in 2024. The consistency between reported and adjusted ratios implies that adjustments have minimal impact on the liquidity assessment.

The financial data reveals several noteworthy trends concerning capital structure and leverage over the five-year period analyzed.

Stockholders’ Equity

This metric displays consistent growth from 1,013,145 thousand US dollars in 2020 to 2,949,145 thousand US dollars by the end of 2024. The increase is steady, with the most pronounced growth occurring between 2023 and 2024. This suggests sustained capital accumulation or retained earnings augmentation over time.

Adjusted Total Debt

The adjusted measure of total debt initially declines from 292,430 thousand US dollars in 2020 to 235,893 thousand in 2023, indicating a reduction in leverage or debt repayment activity during this timeframe. However, in 2024, there is a reversal with adjusted debt rising to 312,215 thousand US dollars, exceeding prior levels and implying possible increased borrowing or liability acquisition in the latest period.

Adjusted Stockholders’ Equity

Adjusted equity figures closely follow the trend of reported stockholders' equity, growing from 970,230 thousand US dollars in 2020 to 2,730,175 thousand in 2024. This growth trajectory indicates an expanding equity base when considering adjustments that may exclude certain elements from the reported equity.

Adjusted Debt to Equity Ratio

The ratio decreases steadily from 0.30 in 2020 to 0.11 in 2024, reflecting a significant reduction in leverage relative to equity over the five years. The decline indicates stronger equity cushions against debt and potentially reduced financial risk, despite the slight uptick in debt observed in 2024. The ratio’s downward trend highlights effective debt management or equity growth outpacing debt accumulation.

In summary, the company demonstrates a pattern of strengthening equity and generally decreasing leverage over the period, with a notable exception in 2024 where debt levels rise, albeit the debt-to-equity ratio remains at a historically low level. This financial profile suggests prudent capital management with a focus on growing equity, supported by cautious handling of indebtedness until the most recent period.

The analysis of the financial data reveals several notable trends in the company's capital structure and debt levels over the observed periods.

Total capital

Total capital has shown a consistent and substantial increase from approximately 1,013 million US dollars at the end of 2020 to nearly 2,949 million US dollars by the end of 2024. This growth indicates an expansion in the company's equity and funding base over the five-year timeframe.

Adjusted total debt

Adjusted total debt has displayed a declining trend from 292,430 thousand US dollars in 2020 to 235,893 thousand in 2023, suggesting a reduction in debt during this period. However, in 2024, adjusted total debt rises to 312,215 thousand US dollars, indicating a reversal in this downward trajectory during the most recent year.

Adjusted total capital

Adjusted total capital follows a similar increasing pattern as total capital, rising from approximately 1,263 million US dollars in 2020 to over 3,042 million US dollars in 2024. The consistent growth in adjusted capital highlights the company’s strengthening capital base when debt adjustments are considered.

Adjusted debt to capital ratio

The ratio declined steadily from 0.23 in 2020 to 0.10 in 2023, reflecting a continuous improvement in the company's solvency and lower reliance on debt financing relative to its capital. Despite the uptick in absolute adjusted debt in 2024, the debt to capital ratio remains stable at 0.10, indicating that capital growth outpaced the increase in debt that year.

Overall, the data indicates a strategic emphasis on capital growth and prudent debt management, with a notable improvement in financial leverage ratios until 2023 and a slight increase in debt in 2024 that did not significantly impact the company's capital structure ratios.

The analysis of the financial data reveals several notable trends in the company's financial position over the five-year period.

Total assets

Total assets have exhibited a consistent upward trajectory from approximately $2.75 billion in 2020 to over $6.11 billion in 2024, demonstrating a more than twofold increase. This steady growth suggests ongoing expansion or asset accumulation by the company.

Stockholders’ equity

Stockholders’ equity has also shown strong growth, increasing from about $1.01 billion in 2020 to nearly $2.95 billion in 2024. The growth rate in equity is robust, indicating either retained earnings accumulation, equity issuances, or a combination of both, contributing to a strengthened equity base.

Reported financial leverage

Financial leverage, measured as a ratio of total assets to equity, has generally declined from 2.72 in 2020 to 2.07 in 2024, with a slight uptick to 2.26 in 2023. This downward trend signifies a gradual reduction in reliance on debt or other liabilities relative to equity, reflecting a potentially more conservative capital structure or improved financial stability.

Adjusted total assets

The adjusted total assets mirror the overall growth pattern observed in total assets, rising from around $2.71 billion to approximately $5.89 billion over the five years. The slight difference compared to reported total assets suggests adjustments for certain accounting items but does not alter the general trend of robust asset growth.

Adjusted stockholders’ equity

Adjusted equity figures also increase significantly, from about $970 million in 2020 to roughly $2.73 billion in 2024. This indicates that after making adjustments, the equity base remains strong and exhibits consistent growth, reinforcing the financial position observed from reported equity.

Adjusted financial leverage

Similar to the reported leverage, adjusted financial leverage declines over the period from 2.79 to 2.16, with a minor increase in 2023 to 2.35. This adjustment confirms the trend toward a decreasing financial leverage ratio, signaling reduced financial risk and enhanced equity coverage relative to assets.

Overall, the data illustrates a growing company with increasing asset and equity bases, coupled with a decreasing financial leverage ratio, both reported and adjusted. These patterns suggest strengthening financial health, improved capital structure, and potentially more conservative financial management over the time frame analyzed.

The financial data over the five-year period exhibits several important trends regarding profitability and revenue growth.

Revenue

Revenue demonstrated consistent and robust growth each year, increasing from 836 million USD in 2020 to nearly 2.44 billion USD in 2024. This steady upward trajectory reflects successful expansion or sales increases over time.

Net Income

Net income shows notable volatility, starting at 242 million USD in 2020, sharply declining in the following years to a low of approximately 53 million USD in 2022, then recovering to 393 million USD by 2024. This pattern suggests fluctuating profitability, potentially driven by varying cost structures, operational challenges, or extraordinary items impacting net income in the middle years.

Reported Net Profit Margin

The reported net profit margin corroborates the net income trend, starting strong at nearly 29% in 2020, falling substantially to 3.38% in 2022, then improving to 16.08% by 2024. The margin decline in 2021 and 2022 might indicate margin compression due to increased expenses or reduced pricing power, followed by partial recovery in subsequent years.

Adjusted Net Income

Adjusted net income generally follows a similar trend as reported net income but at lower absolute values, indicating adjustments for non-recurring or special items. It decreased from 214 million USD in 2020 to 31 million USD in 2022 before rebounding to 316 million USD in 2024. The sharp dip in 2022 suggests significant adjustments during that period, which negatively affected profitability.

Adjusted Net Profit Margin

Consistent with adjusted net income, the adjusted net profit margin decreased from 25.65% in 2020 to a minimal 1.95% in 2022 and then increased to nearly 13% in 2024. This pattern indicates that excluding special items, profitability was under considerable pressure in 2021-2022 but improved afterward.

Overall, the company experienced rapid revenue growth throughout the period while facing a significant decline in profitability in the middle years, followed by a gradual profit recovery by 2024. The fluctuation in reported and adjusted figures suggests some episodic factors or restructuring events affected net income. The improvements in net profit margins toward the end of the period demonstrate effective measures to restore profitability in balance with continued revenue expansion.

Net Income

Net income experienced a notable decline from 2020 to 2022, falling from 242,317 thousand US dollars to 53,385 thousand US dollars. However, a recovery trend is observed in subsequent years, rising to 178,940 thousand US dollars in 2023 and further increasing substantially to 393,076 thousand US dollars in 2024.

Stockholders' Equity

Stockholders’ equity consistently increased over the entire period, growing from 1,013,145 thousand US dollars in 2020 to 2,949,145 thousand US dollars in 2024. The growth shows some slowing down between 2022 and 2023 but accelerates again by 2024.

Reported Return on Equity (ROE)

Reported ROE exhibits a sharp decline from 23.92% in 2020 to a low of 2.52% in 2022. Thereafter, it improves to 8.27% in 2023 and further rises to 13.33% in 2024, indicating a partial recovery in profitability relative to equity.

Adjusted Net Income

Adjusted net income mirrors the trend seen in reported net income, with a decrease from 214,432 thousand US dollars in 2020 to 30,704 thousand US dollars in 2022. This is followed by a recovery to 120,468 thousand US dollars in 2023 and a strong increase to 316,129 thousand US dollars in 2024. The adjusted figures are consistently lower than reported net income but show a similar pattern.

Adjusted Stockholders’ Equity

Adjusted stockholders’ equity rises steadily from 970,230 thousand US dollars in 2020 to 2,730,175 thousand US dollars in 2024. The growth trajectory slows marginally in 2023 but resumes a stronger pace in 2024, closely tracking the reported equity trend.

Adjusted Return on Equity (ROE)

Adjusted ROE declines significantly from 22.1% in 2020 to 1.51% in 2022, indicating reduced profitability based on adjusted net income. A recovery is seen in 2023 with a rise to 5.96%, improving further to 11.58% in 2024, reflecting enhanced efficiency in generating returns on equity based on adjusted figures.

Overall Analysis

The period under review shows a pronounced dip in profitability around 2022, as reflected in both net income and return on equity metrics, whether reported or adjusted. This downturn is followed by a marked recovery through 2023 and 2024, with net income rebounding strongly and equity continuing to build steadily. Despite the fluctuation in income, the continued increase in stockholders’ equity indicates ongoing capital accumulation. The recovery in ROE metrics in the latter years suggests improving operational performance and profitability relative to shareholder investment after a period of weakness.

Net Income Trend

The net income experienced a significant decrease from 242,317 thousand US dollars in 2020 to 53,385 thousand US dollars in 2022. However, there was a strong recovery in the following years, reaching 393,076 thousand US dollars by the end of 2024, which constitutes the highest value over the observed period.

Total Assets Trend

Total assets show a consistent upward trend across the years, increasing steadily from 2,753,645 thousand US dollars in 2020 to 6,111,951 thousand US dollars in 2024. This indicates continuous asset growth and expansion over the five-year period.

Reported Return on Assets (ROA)

The reported ROA declined sharply from 8.8% in 2020 to a low of 1.22% in 2022, reflecting lower profitability relative to asset base during this time. After 2022, the reported ROA recovered to 6.43% by 2024, signifying improved efficiency and profitability with asset utilization.

Adjusted Net Income Dynamics

Adjusted net income mirrored the trends observed in net income but with slightly lower magnitude. It declined from 214,432 thousand US dollars in 2020 to a low of 30,704 thousand US dollars in 2022, followed by recovery to 316,129 thousand US dollars in 2024. This indicates adjustments lowered reported profitability but maintained a similar overall pattern.

Adjusted Total Assets Evolution

Adjusted total assets show a consistent increase throughout the period, growing from 2,710,730 thousand US dollars in 2020 to 5,892,981 thousand US dollars in 2024. This reflects a steady rise in adjusted asset values consistent with the growth in reported total assets.

Adjusted Return on Assets (ROA)

The adjusted ROA decreased from 7.91% in 2020 to a low point of 0.71% in 2022, indicating a significant drop in adjusted profitability relative to assets during that year. It improved thereafter, reaching 5.36% in 2024, showing a gradual recovery in return on adjusted assets.

Overall Insights

The data reveals a period of declining profitability centered around 2022, where both net income and returns on assets hit their lows despite continuous asset growth. Following this period, the company regained profitability and operational efficiency up to 2024, while maintaining steady growth in total asset base. The adjustment process generally resulted in slightly lower reported profit figures and ROA, but the underlying trends remained consistent in both reported and adjusted metrics.