Trade Desk Inc. (NASDAQ:TTD)

The financial ratios presented demonstrate varying trends over the five-year period. Generally, adjusted ratios remain closely aligned with reported ratios, suggesting limited impact from adjustments. Several key areas exhibit notable shifts, indicating evolving financial performance.

Asset Turnover

Both reported and adjusted total asset turnover ratios show a consistent upward trend, increasing from 0.33 in 2021 to 0.47 in 2025. This suggests improving efficiency in utilizing assets to generate revenue over time. The difference between reported and adjusted values remains minimal throughout the period.

Liquidity

The reported and adjusted current ratios fluctuate around the 1.8 to 1.9 range between 2022 and 2024, with a slight decrease to 1.61 in 2025. This indicates a relatively stable short-term liquidity position, although the 2025 value warrants monitoring. The adjustments have a negligible effect on the reported values.

Leverage

Adjusted debt to equity ratios decreased from 0.19 in 2021 to a low of 0.10 in 2023, before increasing to 0.18 in 2025. A similar pattern is observed in the adjusted debt to capital ratios, moving from 0.16 to 0.10 and then to 0.15. This suggests a period of decreasing reliance on debt financing followed by a renewed increase. Adjusted financial leverage mirrors this trend, rising from 2.11 in 2022 to 2.50 in 2025.

Profitability

Reported net profit margin experienced significant volatility, declining sharply from 11.51% in 2021 to 3.38% in 2022, then recovering to 16.08% in 2024 and 15.31% in 2025. The adjusted net profit margin follows a similar pattern, but with lower overall values and a more substantial increase to 21.30% in 2025. The adjustments significantly reduce the reported margin values.

Returns

Both reported and adjusted return on equity (ROE) and return on assets (ROA) exhibit increasing trends. Adjusted ROE increased substantially from 1.51% in 2022 to 25.28% in 2025, while adjusted ROA rose from 0.71% to 10.10% over the same period. These increases align with the improvements in profitability and asset turnover. The adjustments consistently lower the reported return values.

In summary, the company demonstrates improving asset utilization and increasing returns, alongside fluctuating but ultimately increasing leverage. The adjustments applied to the financial ratios generally result in lower profitability and return metrics, suggesting that the reported figures may be overstated relative to an adjusted view.

The reported and adjusted total asset turnover ratios exhibit an increasing trend over the five-year period from 2021 to 2025. Revenue consistently increased year-over-year, while total assets experienced growth, though at a varying pace. The adjusted total asset turnover mirrors the reported ratio closely, suggesting that the adjustments to total assets do not significantly alter the overall efficiency assessment.

Revenue Trend

Revenue demonstrates consistent growth throughout the period, increasing from US$1,196,467 thousand in 2021 to US$2,896,284 thousand in 2025. This represents a cumulative increase of approximately 142%. The rate of growth appears to be accelerating in later years.

Total Asset Trend

Total assets also increased from 2021 to 2025, rising from US$3,577,340 thousand to US$6,153,220 thousand, a cumulative increase of approximately 72%. However, the growth rate of assets was not consistent year-over-year, with a more substantial increase observed between 2022 and 2023, and again between 2023 and 2024.

Reported Total Asset Turnover

The reported total asset turnover ratio increased from 0.33 in 2021 to 0.47 in 2025. The increase was gradual from 2021 to 2023, moving from 0.33 to 0.40. The ratio remained stable at 0.40 in 2024 before increasing to 0.47 in 2025. This indicates improving efficiency in generating revenue from its asset base.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio follows a similar pattern to the reported ratio, beginning at 0.34 in 2021 and reaching 0.47 in 2025. The adjusted ratio was 0.37 in 2022, 0.41 in 2023, and remained at 0.41 in 2024. The consistency between the reported and adjusted ratios suggests that the adjustments made to total assets do not materially impact the interpretation of asset utilization efficiency.

Overall, the increasing trend in both the reported and adjusted total asset turnover ratios suggests that the company is becoming more efficient in utilizing its assets to generate revenue. The relatively small difference between the reported and adjusted ratios indicates that the adjustments to total assets are not significantly altering the assessment of operational efficiency.

The adjusted current ratio remained relatively stable over the five-year period from December 31, 2021, to December 31, 2025. While fluctuations occurred, the ratio consistently indicated a positive liquidity position. A slight initial increase was followed by periods of stability and a minor decline towards the end of the observed timeframe.

Adjusted Current Ratio Trend

The adjusted current ratio began at 1.72 in 2021 and remained at the same level in 2022 and 2023. It then increased to 1.86 in 2024 before decreasing slightly to 1.61 in 2025. This suggests a generally consistent ability to cover short-term liabilities with short-term assets, although the capacity diminished modestly in the final year.

Comparison to Reported Current Ratio

The adjusted current ratio mirrored the trend of the reported current ratio across all observed periods. The values for both ratios were identical in each year, indicating that the adjustments made to current assets did not materially impact the overall liquidity assessment. This suggests the adjustments were likely related to items that did not significantly alter the company’s short-term solvency.

Underlying Asset and Liability Movements

Both adjusted current assets and current liabilities increased over the period. Adjusted current assets grew from US$3,099,023 thousand in 2021 to US$5,347,702 thousand in 2024, before decreasing slightly to US$5,273,203 thousand in 2025. Current liabilities also increased, moving from US$1,803,305 thousand in 2021 to US$3,265,997 thousand in 2025. The relatively stable ratio suggests that the growth in assets and liabilities were broadly proportional.

In summary, the adjusted current ratio demonstrates a consistent, albeit modestly fluctuating, liquidity position throughout the analyzed period. The parallel trends between the adjusted and reported ratios suggest the adjustments applied were not substantial in their impact on the overall assessment of short-term financial health.

The adjusted debt to equity ratio demonstrates a fluctuating pattern over the five-year period. Initially, the ratio decreased before stabilizing and then increasing again. Stockholders’ equity exhibited an overall increase, though with a decrease in the most recent year presented.

Adjusted Debt to Equity Ratio

In 2021, the adjusted debt to equity ratio was 0.19. This decreased significantly to 0.13 in 2022, and continued a slight decline to 0.12 in 2023. The ratio remained relatively stable at 0.11 in 2024, before increasing to 0.18 in 2025. This final increase suggests a growing reliance on debt financing relative to equity in the latest period.

Adjusted Total Debt

Adjusted total debt decreased from US$284,598 thousand in 2021 to US$235,893 thousand in 2023. However, it then increased to US$312,215 thousand in 2024 and further to US$436,330 thousand in 2025. This indicates a shift towards increased debt levels in the latter part of the observed period.

Adjusted Stockholders’ Equity

Adjusted stockholders’ equity generally increased over the period, rising from US$1,466,436 thousand in 2021 to US$2,730,175 thousand in 2024. However, a decrease was observed in 2025, with adjusted stockholders’ equity falling to US$2,440,890 thousand. This decrease, coupled with the increase in adjusted total debt, contributed to the rise in the adjusted debt to equity ratio in that year.

The interplay between adjusted debt and adjusted equity suggests a period of financial stability followed by a potential shift in capital structure. The increase in the adjusted debt to equity ratio in 2025 warrants further investigation to understand the drivers behind the increased debt and the decrease in equity.

The adjusted debt to capital ratio exhibits a fluctuating pattern over the observed period. Initially, the ratio decreased before stabilizing and then increasing again. Adjusted total debt and adjusted total capital both increased overall, but at different rates, influencing the ratio’s movement.

Adjusted Debt to Capital Ratio - Trend Analysis

The adjusted debt to capital ratio began at 0.16 in 2021. It then decreased to 0.11 in 2022 and remained relatively stable at 0.10 in both 2023 and 2024. A notable increase is observed in 2025, with the ratio rising to 0.15. This suggests a growing reliance on debt financing relative to capital in the most recent year.

Adjusted Total Debt - Trend Analysis

Adjusted total debt decreased from US$284,598 thousand in 2021 to US$235,893 thousand in 2023, indicating a period of debt reduction. However, debt levels then increased to US$312,215 thousand in 2024 and further to US$436,330 thousand in 2025. This recent increase represents a significant shift in the company’s debt profile.

Adjusted Total Capital - Trend Analysis

Adjusted total capital generally increased throughout the period. It rose from US$1,751,034 thousand in 2021 to US$2,292,745 thousand in 2022, and continued to US$2,258,089 thousand in 2023. Further growth is seen in 2024, reaching US$3,042,390 thousand, before decreasing slightly to US$2,877,220 thousand in 2025. The capital base demonstrates overall expansion, though with a minor contraction in the final year.

The combination of decreasing debt followed by a substantial increase, alongside generally increasing capital, explains the observed fluctuations in the adjusted debt to capital ratio. The increase in the ratio in 2025 warrants further investigation to understand the drivers behind the increased debt levels.

The financial leverage of the company, as measured by adjusted financial ratios, exhibits a generally stable pattern with a slight increasing trend over the observed period. Total assets demonstrate consistent growth from 2021 to 2025, while stockholders’ equity fluctuates, impacting the leverage ratios. A closer examination of the adjusted figures reveals nuances in the company’s capital structure.

Adjusted Financial Leverage – Overall Trend

Adjusted financial leverage increased from 2.40 in 2021 to 2.50 in 2025. This indicates a growing reliance on debt financing relative to adjusted equity over the five-year period. The ratio remained relatively consistent between 2021 and 2024, at approximately 2.11 to 2.40, before experiencing a more noticeable increase in the final year.

Adjusted Total Assets

Adjusted total assets increased steadily from US$3,516,470 thousand in 2021 to US$6,109,719 thousand in 2025. This growth suggests expansion of the company’s operations and investment in assets. The rate of increase appears to have accelerated between 2023 and 2024.

Adjusted Stockholders’ Equity

Adjusted stockholders’ equity also increased overall, moving from US$1,466,436 thousand in 2021 to US$2,440,890 thousand in 2025. However, the growth was not linear. A slight decrease is observed between 2022 and 2023, followed by a more substantial increase in 2024, and then a decrease in 2025. This fluctuation suggests changes in retained earnings, share issuances, or share repurchases.

Comparison with Reported Financial Leverage

Reported financial leverage generally mirrors the trend observed in adjusted financial leverage. The difference between the reported and adjusted ratios is minimal across all years, suggesting that the adjustments made do not significantly alter the overall assessment of the company’s financial leverage position. Both reported and adjusted leverage ratios indicate a moderate level of financial risk.

In conclusion, the company’s adjusted financial leverage demonstrates a moderate, increasing trend over the period examined. While asset growth is consistent, fluctuations in adjusted stockholders’ equity contribute to the changes in leverage. The adjustments applied do not materially change the overall leverage picture when compared to the reported figures.

The adjusted net profit margin exhibited a fluctuating pattern over the five-year period. Initial values were relatively high, followed by a significant decline, and then a substantial recovery culminating in a peak at the end of the observed timeframe.

Adjusted Net Profit Margin - Overall Trend

The adjusted net profit margin began at 10.01% in 2021. It experienced a considerable decrease to 1.95% in 2022 before initiating an upward trajectory. This upward trend continued through 2023 (6.19%), 2024 (12.93%), and reached 21.30% in 2025. This represents a more than doubling of the initial margin over the period.

Adjusted Net Income and Margin Relationship

The adjusted net income mirrored the trend in the adjusted net profit margin. While revenue consistently increased throughout the period, the adjusted net income experienced a substantial drop in 2022, contributing to the low margin observed that year. The subsequent increases in adjusted net income, particularly the significant jump between 2024 and 2025, directly drove the improvement in the adjusted net profit margin.

Comparison with Reported Net Profit Margin

The adjusted net profit margin consistently remained below the reported net profit margin across all observed years. The difference between the two margins varied, but the adjusted margin generally provided a more conservative view of profitability. The largest divergence occurred in 2022, where the adjusted margin was significantly lower than the reported margin, indicating substantial adjustments were made to arrive at the adjusted figure.

The substantial increase in the adjusted net profit margin in 2025 suggests improved operational efficiency or a change in the cost structure of the business. Further investigation into the nature of the adjustments made to net income would be necessary to fully understand the drivers behind these trends.

The adjusted return on equity (ROE) exhibited considerable fluctuation over the five-year period. Initial values were followed by a period of growth, culminating in a substantial increase in the final year examined. A detailed examination of the components and the resulting ratio reveals key trends.

Adjusted Net Income

Adjusted net income demonstrated a decline from 2021 to 2022, followed by a recovery in 2023. Subsequent years showed significant growth, with a particularly large increase between 2024 and 2025. This suggests improving profitability, or changes in the adjustments made to net income, in the later periods.

Adjusted Stockholders’ Equity

Adjusted stockholders’ equity generally increased from 2021 to 2024, although the rate of increase slowed in 2023. A decrease was observed in 2025. This indicates changes in the company’s capital structure or accounting adjustments impacting equity.

Adjusted ROE Trend

The adjusted ROE began at 8.17% in 2021, decreased substantially to 1.51% in 2022, and then rose to 5.96% in 2023. A further increase was seen in 2024, reaching 11.58%, before a significant jump to 25.28% in 2025. The substantial increase in 2025 is primarily driven by the combination of a large increase in adjusted net income and a relatively smaller change in adjusted stockholders’ equity.

The divergence between the reported and adjusted ROE suggests that certain accounting adjustments are having a material impact on the reported financial performance. The significant increase in adjusted ROE in the final year warrants further investigation to understand the underlying drivers and sustainability of this improvement.

The fluctuations in adjusted stockholders’ equity, particularly the decrease in 2025, should be examined in conjunction with changes in other balance sheet items to determine the cause and potential implications.

The adjusted return on assets (ROA) exhibited a fluctuating pattern over the five-year period. Initial values were relatively modest, followed by a significant increase towards the end of the observed timeframe. A comparison with reported ROA reveals differences in the calculated returns, stemming from adjustments made to net income and total assets.

Adjusted ROA Trend

In 2021, the adjusted ROA stood at 3.41%. This decreased substantially to 0.71% in 2022, representing a considerable decline. A further decrease was noted in 2023, with the adjusted ROA falling to 2.54%. However, a positive trend emerged in subsequent years, with the adjusted ROA increasing to 5.36% in 2024 and reaching 10.10% in 2025. This indicates a strengthening of profitability relative to adjusted asset levels in the later years.

Comparison with Reported ROA

The reported ROA consistently exceeded the adjusted ROA in 2021, 2022, and 2023. The difference between the reported and adjusted ROA narrowed in 2024, and reversed in 2025, where the adjusted ROA surpassed the reported ROA. This suggests that the adjustments to net income and total assets had a more pronounced positive impact on the calculated return in 2025 than in prior years.

Adjusted Net Income and Total Assets

Adjusted net income followed a similar pattern to the adjusted ROA, with a low point in 2022 and substantial growth in 2024 and 2025. Adjusted total assets increased steadily throughout the period, although the rate of increase slowed in 2025. The combination of increasing adjusted net income and relatively stable adjusted total assets contributed to the significant improvement in adjusted ROA observed in the final two years.

The substantial increase in adjusted ROA from 2023 to 2025 warrants further investigation to understand the drivers behind the adjustments made to net income and total assets. The divergence between reported and adjusted ROA also suggests that the adjustments are material and impact the overall assessment of the company’s profitability.