Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Trade Desk Inc., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
- Current Ratio
- The current ratio exhibits a generally stable pattern over the observed periods with moderate fluctuations. Starting at 1.72 in early 2021, it gradually increased to peak around 1.92 by mid-2022. Following this peak, a mild decline is observed, with the ratio settling around 1.71 by late 2025. The trend suggests a maintained ability to cover short-term liabilities, though there is a slight downward trend in the most recent quarters.
- Quick Ratio
- The quick ratio mirrors the behavior of the current ratio but consistently registers slightly lower values, indicative of a similar yet slightly more conservative liquidity position excluding inventories. It moves from 1.62 at the beginning of 2021 to a high near 1.88 in late 2022, before gradually declining to the range of 1.64 by late 2025. This indicates a sustained adequate capacity to meet immediate obligations without relying on inventory liquidation, though recent declines suggest a modest weakening of this short-term financial strength.
- Cash Ratio
- The cash ratio displays more pronounced fluctuations compared to the other liquidity metrics. Initially around 0.54 in early 2021, it increased steadily to about 0.74 by late 2022, reflecting an improvement in the most liquid assets relative to current liabilities. However, after this peak, the ratio declines noticeably, reaching approximately 0.48 by the end of the observed period in 2025. This downward movement indicates a reduction in the company's immediate cash reserves relative to its short-term obligations in the latter periods, which may signal a tightening liquidity position at the highest level of asset liquidity.
Current Ratio
Trade Desk Inc., current ratio calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Current assets | 5,120,286) | 5,053,715) | 4,856,335) | 5,336,458) | 4,838,373) | 4,522,840) | 4,096,419) | 4,313,954) | 4,013,806) | 3,831,763) | 3,475,865) | 3,845,617) | 3,415,363) | 3,196,177) | 2,955,339) | 3,091,649) | 2,515,917) | 2,347,266) | 2,170,149) | ||||||
| Current liabilities | 2,994,771) | 2,948,984) | 2,682,062) | 2,873,465) | 2,615,090) | 2,518,386) | 2,283,350) | 2,510,838) | 2,147,155) | 2,050,984) | 1,830,354) | 2,029,323) | 1,785,240) | 1,665,074) | 1,545,802) | 1,803,305) | 1,427,897) | 1,328,573) | 1,263,476) | ||||||
| Liquidity Ratio | |||||||||||||||||||||||||
| Current ratio1 | 1.71 | 1.71 | 1.81 | 1.86 | 1.85 | 1.80 | 1.79 | 1.72 | 1.87 | 1.87 | 1.90 | 1.90 | 1.91 | 1.92 | 1.91 | 1.71 | 1.76 | 1.77 | 1.72 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Current Ratio, Competitors2 | |||||||||||||||||||||||||
| Alphabet Inc. | 1.75 | 1.90 | 1.77 | 1.84 | 1.95 | 2.08 | 2.15 | 2.10 | 2.04 | 2.17 | 2.35 | 2.38 | 2.52 | 2.81 | 2.87 | 2.93 | 2.98 | 3.15 | 3.10 | ||||||
| Comcast Corp. | 0.88 | 0.91 | 0.65 | 0.68 | 0.72 | 0.66 | 0.59 | 0.60 | 0.70 | 0.76 | 0.69 | 0.78 | 0.84 | 0.88 | 0.86 | 0.85 | 1.03 | 0.92 | 0.96 | ||||||
| Meta Platforms Inc. | 1.98 | 1.97 | 2.66 | 2.98 | 2.73 | 2.83 | 2.68 | 2.67 | 2.57 | 2.32 | 2.07 | 2.20 | 2.57 | 2.52 | 2.81 | 3.15 | 4.23 | 5.43 | 6.08 | ||||||
| Netflix Inc. | 1.33 | 1.34 | 1.20 | 1.22 | 1.13 | 0.95 | 1.07 | 1.12 | 1.29 | 1.33 | 1.26 | 1.17 | 1.14 | 1.05 | 1.05 | 0.95 | 1.17 | 1.23 | 1.27 | ||||||
| Walt Disney Co. | 0.72 | 0.67 | 0.68 | 0.73 | 0.72 | 0.75 | 0.84 | 1.05 | 1.07 | 1.01 | 0.99 | 1.00 | 1.02 | 1.06 | 1.10 | 1.08 | 1.24 | 1.23 | 1.31 | ||||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q3 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 5,120,286 ÷ 2,994,771 = 1.71
2 Click competitor name to see calculations.
- Current Assets
- The current assets exhibit a generally upward trend throughout the observed periods, starting from approximately 2,170 million USD and increasing to over 5,120 million USD by the end. There is consistent growth quarter-over-quarter, with some more pronounced increments observed in later periods, especially from early 2024 onward, indicating enhanced liquidity or accumulation of short-term resources.
- Current Liabilities
- Current liabilities also show an increasing trend, beginning at approximately 1,263 million USD and rising to nearly 3,000 million USD by the latest quarter. This increase is steady, with the figures nearly doubling over the timeframe. The growth in liabilities reflects potentially higher short-term obligations, which may correlate with the rising scale of operations or financing requirements.
- Current Ratio
- The current ratio remains relatively stable, fluctuating in a narrow range between 1.7 and 1.92 across the periods. Initially, there is a mild increase from 1.72 to about 1.92 during mid-2022, signifying an improvement in short-term financial health. However, it slightly decreases again in later quarters, settling around 1.7 by the end. This indicates that despite considerable growth in both assets and liabilities, the company's liquidity position remains steady with sufficient current assets to cover current obligations consistently.
- Overall Analysis
- The financial data reveals that the company has been expanding its current assets and liabilities in nearly parallel fashion, which results in a stable but moderate current ratio above 1.7 throughout the quarters. This suggests prudent management of working capital, maintaining a balanced liquidity position despite scaling activities. There is no indication of deteriorating liquidity risk; however, the rising liabilities warrant continuous monitoring to ensure that asset growth and cash generation sustain this equilibrium.
Quick Ratio
Trade Desk Inc., quick ratio calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Cash and cash equivalents | 653,134) | 896,387) | 1,118,545) | 1,369,463) | 1,221,475) | 1,009,363) | 918,200) | 895,129) | 1,071,764) | 965,831) | 892,702) | 1,030,506) | 994,656) | 932,683) | 844,223) | 754,154) | 576,916) | 476,907) | 471,637) | ||||||
| Short-term investments, net | 792,313) | 790,874) | 621,826) | 552,026) | 510,290) | 497,168) | 501,360) | 485,159) | 450,117) | 465,113) | 437,730) | 416,080) | 326,745) | 280,459) | 260,347) | 204,625) | 221,685) | 228,150) | 208,446) | ||||||
| Accounts receivable, net of allowance for credit losses | 3,478,338) | 3,254,908) | 3,051,928) | 3,330,343) | 2,989,387) | 2,905,533) | 2,619,280) | 2,870,313) | 2,434,047) | 2,346,070) | 2,086,332) | 2,347,195) | 2,026,929) | 1,902,504) | 1,760,985) | 2,020,720) | 1,624,759) | 1,527,651) | 1,368,668) | ||||||
| Total quick assets | 4,923,785) | 4,942,169) | 4,792,299) | 5,251,832) | 4,721,152) | 4,412,064) | 4,038,840) | 4,250,601) | 3,955,928) | 3,777,014) | 3,416,764) | 3,793,781) | 3,348,330) | 3,115,646) | 2,865,555) | 2,979,499) | 2,423,360) | 2,232,708) | 2,048,751) | ||||||
| Current liabilities | 2,994,771) | 2,948,984) | 2,682,062) | 2,873,465) | 2,615,090) | 2,518,386) | 2,283,350) | 2,510,838) | 2,147,155) | 2,050,984) | 1,830,354) | 2,029,323) | 1,785,240) | 1,665,074) | 1,545,802) | 1,803,305) | 1,427,897) | 1,328,573) | 1,263,476) | ||||||
| Liquidity Ratio | |||||||||||||||||||||||||
| Quick ratio1 | 1.64 | 1.68 | 1.79 | 1.83 | 1.81 | 1.75 | 1.77 | 1.69 | 1.84 | 1.84 | 1.87 | 1.87 | 1.88 | 1.87 | 1.85 | 1.65 | 1.70 | 1.68 | 1.62 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Quick Ratio, Competitors2 | |||||||||||||||||||||||||
| Alphabet Inc. | 1.56 | 1.72 | 1.60 | 1.66 | 1.76 | 1.90 | 1.98 | 1.94 | 1.87 | 2.02 | 2.20 | 2.22 | 2.29 | 2.62 | 2.72 | 2.79 | 2.85 | 3.01 | 2.94 | ||||||
| Comcast Corp. | 0.69 | 0.71 | 0.51 | 0.53 | 0.60 | 0.54 | 0.49 | 0.50 | 0.56 | 0.61 | 0.55 | 0.62 | 0.63 | 0.68 | 0.71 | 0.71 | 0.89 | 0.80 | 0.84 | ||||||
| Meta Platforms Inc. | 1.67 | 1.71 | 2.50 | 2.82 | 2.57 | 2.69 | 2.55 | 2.55 | 2.43 | 2.20 | 1.91 | 2.01 | 2.34 | 2.34 | 2.62 | 2.94 | 3.94 | 5.09 | 5.86 | ||||||
| Netflix Inc. | 0.96 | 0.94 | 0.86 | 0.89 | 0.86 | 0.66 | 0.76 | 0.81 | 0.94 | 0.99 | 0.94 | 0.76 | 0.79 | 0.78 | 0.78 | 0.71 | 0.94 | 0.99 | 1.06 | ||||||
| Walt Disney Co. | 0.57 | 0.54 | 0.55 | 0.54 | 0.53 | 0.57 | 0.69 | 0.85 | 0.87 | 0.83 | 0.83 | 0.83 | 0.87 | 0.91 | 0.98 | 0.94 | 1.07 | 1.07 | 1.17 | ||||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q3 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 4,923,785 ÷ 2,994,771 = 1.64
2 Click competitor name to see calculations.
- Total Quick Assets
- The total quick assets demonstrated a generally upward trajectory over the observed quarters. Beginning at approximately $2.05 billion in March 2021, the value increased steadily, reaching a peak of around $5.25 billion by December 2024. After this peak, values showed a slight decline, with the figure at $4.92 billion in the final recorded quarter (September 2025). This indicates consistent growth in liquid assets with a minor tapering towards the end of the period.
- Current Liabilities
- Current liabilities also exhibited growth throughout the period under review. Starting at roughly $1.26 billion in March 2021, liabilities rose steadily to about $2.87 billion in December 2024. Following this peak, there was a marginal decrease and stabilization, with liabilities recorded near $3.00 billion by September 2025. The growth in liabilities, although slower than quick assets, remained significant, reflecting increased obligations over time.
- Quick Ratio
- The quick ratio maintained a generally healthy range, remaining above 1.6 across all quarters, indicating a consistent ability to meet short-term liabilities with liquid assets. The ratio increased from 1.62 in March 2021 to a higher plateau near 1.88 by September 2022, suggesting improved liquidity during this period. However, from late 2022 onwards through to the last quarter, a gradual decline in the quick ratio was observed, dropping to approximately 1.64 by September 2025. Despite this decline, the ratio stayed within a level generally considered satisfactory for liquidity coverage.
- Overall Insights
- The combined analysis of total quick assets, current liabilities, and the quick ratio points to a period of robust growth in liquid assets outpacing the increase in liabilities, which positively influenced liquidity. However, beginning in late 2022, the quick ratio's downward trend signals a relative acceleration of liabilities compared to quick assets. This trend suggests increasing pressure on liquidity, although the quick ratio does not indicate immediate concern, as it remains above critical thresholds. Monitoring this metric in subsequent periods would be advisable to ensure liquidity remains strong in relation to short-term obligations.
Cash Ratio
Trade Desk Inc., cash ratio calculation (quarterly data)
| Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||
| Cash and cash equivalents | 653,134) | 896,387) | 1,118,545) | 1,369,463) | 1,221,475) | 1,009,363) | 918,200) | 895,129) | 1,071,764) | 965,831) | 892,702) | 1,030,506) | 994,656) | 932,683) | 844,223) | 754,154) | 576,916) | 476,907) | 471,637) | ||||||
| Short-term investments, net | 792,313) | 790,874) | 621,826) | 552,026) | 510,290) | 497,168) | 501,360) | 485,159) | 450,117) | 465,113) | 437,730) | 416,080) | 326,745) | 280,459) | 260,347) | 204,625) | 221,685) | 228,150) | 208,446) | ||||||
| Total cash assets | 1,445,447) | 1,687,261) | 1,740,371) | 1,921,489) | 1,731,765) | 1,506,531) | 1,419,560) | 1,380,288) | 1,521,881) | 1,430,944) | 1,330,432) | 1,446,586) | 1,321,401) | 1,213,142) | 1,104,570) | 958,779) | 798,601) | 705,057) | 680,083) | ||||||
| Current liabilities | 2,994,771) | 2,948,984) | 2,682,062) | 2,873,465) | 2,615,090) | 2,518,386) | 2,283,350) | 2,510,838) | 2,147,155) | 2,050,984) | 1,830,354) | 2,029,323) | 1,785,240) | 1,665,074) | 1,545,802) | 1,803,305) | 1,427,897) | 1,328,573) | 1,263,476) | ||||||
| Liquidity Ratio | |||||||||||||||||||||||||
| Cash ratio1 | 0.48 | 0.57 | 0.65 | 0.67 | 0.66 | 0.60 | 0.62 | 0.55 | 0.71 | 0.70 | 0.73 | 0.71 | 0.74 | 0.73 | 0.71 | 0.53 | 0.56 | 0.53 | 0.54 | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Cash Ratio, Competitors2 | |||||||||||||||||||||||||
| Alphabet Inc. | 0.99 | 1.09 | 1.04 | 1.07 | 1.15 | 1.29 | 1.40 | 1.36 | 1.39 | 1.52 | 1.67 | 1.64 | 1.76 | 2.04 | 2.16 | 2.17 | 2.30 | 2.44 | 2.44 | ||||||
| Comcast Corp. | 0.29 | 0.30 | 0.20 | 0.18 | 0.23 | 0.17 | 0.16 | 0.15 | 0.19 | 0.22 | 0.17 | 0.17 | 0.20 | 0.25 | 0.30 | 0.30 | 0.44 | 0.42 | 0.49 | ||||||
| Meta Platforms Inc. | 1.20 | 1.26 | 2.07 | 2.32 | 2.13 | 2.15 | 2.07 | 2.05 | 2.00 | 1.79 | 1.48 | 1.51 | 1.84 | 1.82 | 2.08 | 2.27 | 3.26 | 4.31 | 5.05 | ||||||
| Netflix Inc. | 0.96 | 0.94 | 0.86 | 0.89 | 0.86 | 0.66 | 0.76 | 0.81 | 0.94 | 0.99 | 0.94 | 0.76 | 0.79 | 0.78 | 0.78 | 0.71 | 0.94 | 0.99 | 1.06 | ||||||
| Walt Disney Co. | 0.16 | 0.17 | 0.16 | 0.17 | 0.17 | 0.20 | 0.23 | 0.46 | 0.41 | 0.37 | 0.31 | 0.40 | 0.42 | 0.45 | 0.48 | 0.51 | 0.59 | 0.60 | 0.64 | ||||||
Based on: 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q3 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 1,445,447 ÷ 2,994,771 = 0.48
2 Click competitor name to see calculations.
- Total Cash Assets
- The total cash assets demonstrated a general upward trend from March 2021 through mid-2024, increasing from approximately $680 million to over $1.7 billion. This growth was somewhat volatile, with noticeable decreases beginning in late 2024 and continuing into 2025, declining to approximately $1.44 billion by September 2025. The peak levels occurred around the end of 2024 and early 2025 before the decline.
- Current Liabilities
- Current liabilities steadily increased throughout the entire period from March 2021 to September 2025. Starting at around $1.26 billion, the liabilities showed consistent growth, reaching nearly $3 billion by the third quarter of 2025. The increase was continuous without periods of decline, indicating growing short-term obligations.
- Cash Ratio
- The cash ratio started around 0.54 in the first quarter of 2021, showing moderate fluctuations over the years. It improved notably during 2022 and early 2023, peaking around 0.73 to 0.74, suggesting a stronger liquidity position in those quarters. However, from late 2023 onwards, the ratio declined with intermittent changes, falling to approximately 0.48 by the third quarter of 2025. This indicates a weakening capacity to cover current liabilities with cash or cash equivalents toward the end of the observed period.
- Overall Analysis
- Over the evaluated period, cash assets increased significantly but eventually faced a reduction starting at the end of 2024, while current liabilities more than doubled, steadily rising without reversal. The cash ratio reflected these movements, improving in the middle periods but deteriorating towards the end. This implies that although the company increased its cash holdings initially, the growth in current liabilities outpaced cash asset growth in later periods, potentially signaling increased liquidity risk or changes in working capital management.