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: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 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).
An analysis of the liquidity position from March 2022 through June 2026 reveals a general trend of moderate compression in liquidity ratios, characterized by periodic cyclical fluctuations. While the organization maintains a current ratio consistently above 1.60, suggesting a sustained ability to cover short-term obligations, there is a visible downward trajectory in the overall liquidity cushion over the measured period.
- Current Ratio
- The current ratio remained relatively stable between 1.90 and 1.92 during the first year, before experiencing a decline to 1.72 by December 2023. Following a recovery to 1.86 in December 2024, the ratio reached its lowest point of 1.61 in December 2025. A modest recovery to 1.72 is observed by June 2026. The overall movement indicates a slight reduction in the margin of safety for meeting current liabilities.
- Quick Ratio
- The quick ratio mirrors the trajectory of the current ratio closely, starting at 1.85 and ending at 1.68. The minimal variance between the current and quick ratios suggests that the company holds negligible inventory, as the subtraction of inventory from current assets has a negligible impact on the ratio. Similar to the current ratio, a cyclical dip is noted every December, with a significant low of 1.55 in December 2025.
- Cash Ratio
- The cash ratio exhibits the highest degree of volatility among the three metrics. After maintaining a range of 0.70 to 0.74 in 2022, the ratio declined to 0.55 by December 2023. Despite a temporary rebound to 0.67 in December 2024, a sharp contraction occurred in 2025, reaching a period low of 0.40 in December 2025. The ratio subsequently recovered to 0.53 by June 2026, indicating that while the organization retains a significant cash position, the proportion of highly liquid assets relative to current liabilities has diminished over time.
A consistent seasonal pattern is observable across all three liquidity metrics, with ratios typically reaching their annual troughs in December. This suggests a recurring end-of-year increase in current liabilities or a cyclical utilization of cash reserves. Despite these fluctuations and a general long-term decline, the liquidity profile remains robust, as all ratios stay well above critical thresholds.
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Current Ratio
Trade Desk Inc., current ratio calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||
| Current assets | 4,815,827) | 4,861,663) | 5,261,004) | 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) | ||||||
| Current liabilities | 2,793,676) | 2,890,442) | 3,265,997) | 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) | ||||||
| Liquidity Ratio | ||||||||||||||||||||||||
| Current ratio1 | 1.72 | 1.68 | 1.61 | 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 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Current Ratio, Competitors2 | ||||||||||||||||||||||||
| Alphabet Inc. | 2.72 | 1.92 | 2.01 | 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 | ||||||
| Comcast Corp. | 0.80 | 0.87 | 0.88 | 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 | ||||||
| Meta Platforms Inc. | 2.23 | 2.35 | 2.60 | 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 | ||||||
| Netflix Inc. | 1.14 | 1.41 | 1.19 | 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 | ||||||
| Walt Disney Co. | 0.68 | 0.67 | 0.71 | 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 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 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).
1 Q2 2026 Calculation
Current ratio = Current assets ÷ Current liabilities
= 4,815,827 ÷ 2,793,676 = 1.72
2 Click competitor name to see calculations.
The liquidity position of the organization exhibits a general growth in both current assets and current liabilities over the analyzed period from March 2022 through June 2026. While absolute liquidity has expanded, the current ratio—a measure of the ability to cover short-term obligations—demonstrates a gradual downward trajectory characterized by periodic fluctuations.
- Asset and Liability Expansion
- Current assets grew from 2,955,339 thousand US$ in March 2022 to a peak of 5,336,458 thousand US$ in December 2024, before stabilizing between 4.8 billion and 5.2 billion US$ through mid-2026. During the same period, current liabilities increased from 1,545,802 thousand US$ to a peak of 3,265,997 thousand US$ in December 2025. The simultaneous rise in both metrics suggests an expansion of operational scale, though liabilities grew at a rate that occasionally outpaced asset accumulation.
- Current Ratio Stability and Volatility
- For the first year of the period, the current ratio remained highly stable, oscillating narrowly between 1.90 and 1.92. A notable contraction occurred by December 2023, where the ratio fell to 1.72. This was followed by a partial recovery throughout 2024, reaching 1.86 by December 31, 2024.
- Long-term Liquidity Trend
- A more pronounced decline is observed throughout 2025, with the current ratio reaching its lowest point of 1.61 in December 2025. This decline indicates a tightening of the liquidity cushion relative to short-term obligations. However, the first half of 2026 shows a modest reversal of this trend, with the ratio improving to 1.72 by June 30, 2026.
- Overall Liquidity Assessment
- Despite the downward trend from the initial 1.91 level, the current ratio consistently remained well above 1.0 throughout the entire timeframe. This indicates that the organization maintained a sufficient margin of safety to meet its short-term liabilities using its current assets, despite the evolving balance between asset growth and liability accumulation.
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Quick Ratio
Trade Desk Inc., quick ratio calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||
| Cash and cash equivalents | 1,122,979) | 878,377) | 658,175) | 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) | ||||||
| Short-term investments, net | 362,354) | 527,538) | 644,882) | 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) | ||||||
| Accounts receivable, net of allowance for credit losses | 3,200,824) | 3,323,673) | 3,770,194) | 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) | ||||||
| Total quick assets | 4,686,157) | 4,729,588) | 5,073,251) | 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) | ||||||
| Current liabilities | 2,793,676) | 2,890,442) | 3,265,997) | 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) | ||||||
| Liquidity Ratio | ||||||||||||||||||||||||
| Quick ratio1 | 1.68 | 1.64 | 1.55 | 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 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Quick Ratio, Competitors2 | ||||||||||||||||||||||||
| Alphabet Inc. | 2.47 | 1.71 | 1.85 | 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 | ||||||
| Comcast Corp. | 0.65 | 0.71 | 0.70 | 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 | ||||||
| Meta Platforms Inc. | 1.99 | 2.11 | 2.42 | 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 | ||||||
| Netflix Inc. | 0.75 | 1.01 | 0.83 | 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 | ||||||
| Walt Disney Co. | 0.55 | 0.54 | 0.55 | 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 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 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).
1 Q2 2026 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 4,686,157 ÷ 2,793,676 = 1.68
2 Click competitor name to see calculations.
The liquidity position shows a consistent ability to cover short-term obligations using highly liquid assets, although a gradual contraction in the margin of safety is observable over the analyzed period. While both quick assets and current liabilities grew in absolute terms, the rate of liability growth accelerated relative to asset accumulation toward the end of the timeframe, leading to a moderate decline in the overall quick ratio.
- Quick Asset Growth and Volatility
- Total quick assets exhibited a strong upward trend from March 2022, rising from 2,865,555 thousand USD to a peak of 5,251,832 thousand USD by December 2024. Following this peak, assets entered a period of slight contraction and stabilization, ending the period at 4,686,157 thousand USD in June 2026. This growth indicates a significant increase in the company's liquid resource base over the first three years of the period.
- Current Liabilities Expansion
- Current liabilities demonstrated a steady increase, growing from 1,545,802 thousand USD in March 2022 to a maximum of 3,265,997 thousand USD in December 2025. The growth in liabilities was more linear than the growth in assets, characterized by persistent quarterly increases with only minor seasonal dips in March of each year.
- Quick Ratio Performance and Trends
- The quick ratio remained highly stable between 1.84 and 1.88 from March 2022 through June 2023. A period of increased volatility followed, marked by a decline to 1.69 in December 2023 and a subsequent recovery to 1.83 by December 2024. A notable downward trend emerged throughout 2025, where the ratio reached its lowest point of 1.55 in December 2025. By June 2026, the ratio showed signs of stabilization at 1.68.
- Liquidity Correlation Analysis
- The decline in the quick ratio during 2025 is directly attributable to a divergence where current liabilities continued to rise while total quick assets remained stagnant or declined. Despite this downward pressure, the ratio remained well above 1.0 throughout the entire period, signifying that the company maintained a sufficient cushion of liquid assets to meet all immediate current liabilities without relying on inventory sales.
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Cash Ratio
Trade Desk Inc., cash ratio calculation (quarterly data)
| Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | 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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||
| Cash and cash equivalents | 1,122,979) | 878,377) | 658,175) | 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) | ||||||
| Short-term investments, net | 362,354) | 527,538) | 644,882) | 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) | ||||||
| Total cash assets | 1,485,333) | 1,405,915) | 1,303,057) | 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) | ||||||
| Current liabilities | 2,793,676) | 2,890,442) | 3,265,997) | 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) | ||||||
| Liquidity Ratio | ||||||||||||||||||||||||
| Cash ratio1 | 0.53 | 0.49 | 0.40 | 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 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Cash Ratio, Competitors2 | ||||||||||||||||||||||||
| Alphabet Inc. | 1.92 | 1.14 | 1.23 | 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 | ||||||
| Comcast Corp. | 0.23 | 0.28 | 0.28 | 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 | ||||||
| Meta Platforms Inc. | 1.60 | 1.74 | 1.95 | 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 | ||||||
| Netflix Inc. | 0.75 | 1.01 | 0.83 | 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 | ||||||
| Walt Disney Co. | 0.16 | 0.15 | 0.17 | 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 | ||||||
Based on: 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 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).
1 Q2 2026 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 1,485,333 ÷ 2,793,676 = 0.53
2 Click competitor name to see calculations.
The liquidity profile demonstrates a gradual deterioration in the cash ratio over the analyzed period, characterized by a transition from a stable baseline to a more volatile and lower valuation. While a relatively consistent cash ratio between 0.70 and 0.74 was maintained throughout 2022 and early 2023, a long-term downward trajectory emerged starting in late 2023.
- Cash Asset Dynamics
- Total cash assets exhibited growth from 1.10 billion USD in March 2022 to a peak of 1.92 billion USD in December 2024. However, a subsequent contraction occurred throughout 2025, with assets declining to 1.30 billion USD by December 2025 before recovering to 1.49 billion USD by June 2026.
- Liability Expansion
- Current liabilities showed a persistent upward trend, increasing from 1.55 billion USD in March 2022 to a high of 3.27 billion USD in December 2025. The growth in obligations consistently outpaced the accumulation of cash reserves over the long term, particularly between 2023 and 2025, which exerted significant downward pressure on the liquidity ratio.
- Cash Ratio Trends
- The cash ratio peaked at 0.74 in September 2022 and reached its lowest point of 0.40 in December 2025. A period of significant liquidity tightening is observable between June 2025 (0.57) and December 2025 (0.40), coinciding with a simultaneous decrease in cash assets and an increase in current liabilities. A modest recovery is evident in the first half of 2026, with the ratio rising to 0.53 by June 2026.
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