Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Trade Desk Inc., solvency ratios
Based on: 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).
- Debt Ratios Including Operating Lease Liability
- The debt to equity ratio demonstrates a consistent declining trend from 0.29 in 2020 to 0.11 by 2023 and remains stable at 0.11 in 2024, indicating a reduction in reliance on debt relative to shareholder equity. Similarly, the debt to capital ratio exhibits a decrease from 0.22 in 2020 to 0.10 in the years 2023 and 2024, reflecting a decreasing proportion of debt within the company's total capital structure. The debt to assets ratio also follows this downward pattern, moving from 0.11 in 2020 to 0.05 in both 2023 and 2024, which suggests reduced leverage and a stronger asset base financing over time.
- Financial Leverage
- Financial leverage ratios show a decline from 2.72 in 2020 to 2.07 in 2022, indicating a gradual reduction in the degree to which assets are financed by debt. However, the ratio rises slightly to 2.26 in 2023 before returning to 2.07 in 2024, suggesting some fluctuations but an overall trend toward lower financial leverage over the period.
- Interest Coverage
- Interest coverage ratios reveal notable volatility; starting at a high level of 119.48 in 2021, declining sharply to 32.73 in 2022, then increasing markedly to 162.83 in 2023 and reaching a peak of 336.07 in 2024. This indicates a significant improvement in the company’s ability to meet interest obligations, especially in the last two years, reflecting enhanced earnings or reduced interest expenses.
- Fixed Charge Coverage
- The fixed charge coverage ratio shows a decline from 4.4 in 2020 to 3.28 in 2022, implying some reduction in the coverage of fixed charges by operating income. However, this ratio rebounds considerably to 6.3 in 2023 and further to 9.7 in 2024, signaling improved capacity to cover fixed financial obligations over recent periods.
- Overall Interpretation
- The company exhibits a consistent deleveraging trend from 2020 to 2024, with steady reductions in various debt ratios including operating lease liabilities. This deleveraging is complemented by fluctuations in financial leverage that generally point to reduced reliance on borrowed funds. Improvements in both interest and fixed charge coverage ratios, particularly in the last two years, suggest enhanced earnings strength or cost management, contributing to greater financial stability and risk mitigation.
Debt Ratios
Coverage Ratios
Debt to Equity
Trade Desk Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total debt | —) | —) | —) | —) | —) | |
| Stockholders’ equity | 2,949,145) | 2,164,219) | 2,115,339) | 1,527,306) | 1,013,145) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Alphabet Inc. | 0.05 | 0.05 | 0.06 | 0.06 | 0.07 | |
| Charter Communications Inc. | 6.14 | 8.86 | 10.70 | 6.52 | 3.48 | |
| Comcast Corp. | 1.16 | 1.17 | 1.17 | 0.99 | 1.15 | |
| Meta Platforms Inc. | 0.16 | 0.12 | 0.08 | 0.00 | 0.00 | |
| Netflix Inc. | 0.63 | 0.71 | 0.69 | 0.97 | 1.47 | |
| Walt Disney Co. | 0.46 | 0.47 | 0.51 | 0.62 | 0.71 | |
| Debt to Equity, Sector | ||||||
| Media & Entertainment | 0.41 | 0.44 | 0.48 | 0.46 | 0.49 | |
| Debt to Equity, Industry | ||||||
| Communication Services | 0.65 | 0.72 | 0.76 | 0.74 | 0.74 | |
Based on: 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).
1 2024 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 0 ÷ 2,949,145 = 0.00
2 Click competitor name to see calculations.
The financial data reveals the stockholders' equity values over a five-year span, from December 31, 2020, to December 31, 2024. Other key financial metrics such as total debt and debt to equity ratio are not provided, which limits the analysis to the equity figures.
- Stockholders' Equity Trends
- The stockholders' equity demonstrates a consistent upward trajectory throughout the reported periods. Starting at approximately 1.013 billion US dollars at the end of 2020, the equity value rises substantially each year, reaching around 1.527 billion by the end of 2021, which signifies a significant increase of about 50.7% within one year.
- In 2022, equity continues to grow robustly, reaching approximately 2.115 billion US dollars, which reflects an increase of roughly 38.6% compared to the previous year. This strong growth momentum persists into 2023 with a smaller increment, where equity reaches about 2.164 billion US dollars, marking a more moderate growth of around 2.3% year-over-year.
- By the end of 2024, stockholders’ equity experiences a notable surge to nearly 2.949 billion US dollars, indicating a substantial increase of approximately 36.3% from 2023. Overall, the equity has nearly tripled over the five-year timeframe, suggesting a strong accumulation of retained earnings or capital contributions.
Without accompanying debt information, it is not possible to assess the company’s leverage or capital structure changes directly. However, the robust growth in equity alone signals a strengthening of the company's net asset base over time. This trend may imply improved financial stability, increased investor confidence, or successful business expansion supporting equity growth.
Debt to Equity (including Operating Lease Liability)
Trade Desk Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total debt | —) | —) | —) | —) | —) | |
| Operating lease liabilities, current | 64,492) | 55,524) | 52,430) | 46,149) | 37,868) | |
| Operating lease liabilities, non-current | 247,723) | 180,369) | 208,527) | 238,449) | 254,562) | |
| Total debt (including operating lease liability) | 312,215) | 235,893) | 260,957) | 284,598) | 292,430) | |
| Stockholders’ equity | 2,949,145) | 2,164,219) | 2,115,339) | 1,527,306) | 1,013,145) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.11 | 0.11 | 0.12 | 0.19 | 0.29 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Alphabet Inc. | 0.09 | 0.11 | 0.12 | 0.11 | 0.13 | |
| Charter Communications Inc. | 6.23 | 8.99 | 10.85 | 6.62 | 3.53 | |
| Comcast Corp. | 1.23 | 1.25 | 1.26 | 1.06 | 1.20 | |
| Meta Platforms Inc. | 0.27 | 0.25 | 0.22 | 0.12 | 0.09 | |
| Netflix Inc. | 0.73 | 0.82 | 0.81 | 1.14 | 1.67 | |
| Walt Disney Co. | 0.49 | 0.51 | 0.55 | 0.66 | 0.75 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Media & Entertainment | 0.48 | 0.52 | 0.55 | 0.53 | 0.56 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Communication Services | 0.77 | 0.86 | 0.91 | 0.88 | 0.88 | |
Based on: 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).
1 2024 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 312,215 ÷ 2,949,145 = 0.11
2 Click competitor name to see calculations.
- Total debt (including operating lease liability)
- The total debt exhibited a decreasing trend from 2020 through 2023, dropping from approximately 292 million US dollars at the end of 2020 to about 236 million US dollars at the end of 2023. However, there was a notable increase in total debt in 2024, rising sharply to around 312 million US dollars, exceeding the 2020 level.
- Stockholders’ equity
- Stockholders’ equity consistently increased throughout the analyzed period. Starting at roughly 1.01 billion US dollars in 2020, it grew significantly to about 2.95 billion US dollars by the end of 2024. The increase displays steady growth year-on-year, with a particularly strong rise between 2023 and 2024.
- Debt to equity ratio (including operating lease liability)
- The debt to equity ratio showed a clear downward trend from 0.29 at the end of 2020 to 0.11 by the end of 2023, indicating a reduction in leverage relative to equity. Despite the sharp increase in total debt in 2024, the ratio remained stable at 0.11, reflecting the proportional increase in equity that maintained the company’s low leverage position.
Debt to Capital
Trade Desk Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total debt | —) | —) | —) | —) | —) | |
| Stockholders’ equity | 2,949,145) | 2,164,219) | 2,115,339) | 1,527,306) | 1,013,145) | |
| Total capital | 2,949,145) | 2,164,219) | 2,115,339) | 1,527,306) | 1,013,145) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Alphabet Inc. | 0.05 | 0.05 | 0.06 | 0.06 | 0.06 | |
| Charter Communications Inc. | 0.86 | 0.90 | 0.91 | 0.87 | 0.78 | |
| Comcast Corp. | 0.54 | 0.54 | 0.54 | 0.50 | 0.53 | |
| Meta Platforms Inc. | 0.14 | 0.11 | 0.08 | 0.00 | 0.00 | |
| Netflix Inc. | 0.39 | 0.41 | 0.41 | 0.49 | 0.60 | |
| Walt Disney Co. | 0.31 | 0.32 | 0.34 | 0.38 | 0.41 | |
| Debt to Capital, Sector | ||||||
| Media & Entertainment | 0.29 | 0.31 | 0.32 | 0.31 | 0.33 | |
| Debt to Capital, Industry | ||||||
| Communication Services | 0.39 | 0.42 | 0.43 | 0.43 | 0.43 | |
Based on: 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).
1 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= 0 ÷ 2,949,145 = 0.00
2 Click competitor name to see calculations.
The available data presents the total capital figures for a five-year period ending December 31, 2024. However, there is an absence of reported values for total debt and the debt to capital ratio throughout the same timeline.
- Total Capital
- The total capital has shown a consistent upward trend over the observed period. Starting from approximately 1,013,145 thousand US dollars at the end of 2020, it increased markedly to 1,527,306 thousand US dollars by the end of 2021. This growth trajectory continued into 2022, reaching 2,115,339 thousand US dollars. Although the increase between 2022 and 2023 was marginal, with total capital inching to 2,164,219 thousand US dollars, a significant jump occurred by the end of 2024, when the figure reached 2,949,145 thousand US dollars. This overall growth suggests an expansion in the company’s funding base or asset base over the years.
- Total Debt
- The dataset does not include any reported values for total debt across all periods, indicating either the absence of debt or unavailable or unreported data. This lack of data limits the analysis of the company's leverage and financial risk profile.
- Debt to Capital Ratio
- Similarly, there are no reported values for the debt to capital ratio, precluding any analysis of the company's capital structure or the extent of financial leverage utilized.
In summary, the observable data reveals a steady and significant increase in total capital over the five-year period. However, the absence of data regarding total debt and the debt to capital ratio restricts comprehensive assessment of the company's financing mix and risk assessment over time.
Debt to Capital (including Operating Lease Liability)
Trade Desk Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total debt | —) | —) | —) | —) | —) | |
| Operating lease liabilities, current | 64,492) | 55,524) | 52,430) | 46,149) | 37,868) | |
| Operating lease liabilities, non-current | 247,723) | 180,369) | 208,527) | 238,449) | 254,562) | |
| Total debt (including operating lease liability) | 312,215) | 235,893) | 260,957) | 284,598) | 292,430) | |
| Stockholders’ equity | 2,949,145) | 2,164,219) | 2,115,339) | 1,527,306) | 1,013,145) | |
| Total capital (including operating lease liability) | 3,261,360) | 2,400,112) | 2,376,296) | 1,811,904) | 1,305,575) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.10 | 0.10 | 0.11 | 0.16 | 0.22 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Alphabet Inc. | 0.09 | 0.10 | 0.10 | 0.10 | 0.11 | |
| Charter Communications Inc. | 0.86 | 0.90 | 0.92 | 0.87 | 0.78 | |
| Comcast Corp. | 0.55 | 0.56 | 0.56 | 0.52 | 0.55 | |
| Meta Platforms Inc. | 0.21 | 0.20 | 0.18 | 0.10 | 0.08 | |
| Netflix Inc. | 0.42 | 0.45 | 0.45 | 0.53 | 0.63 | |
| Walt Disney Co. | 0.33 | 0.34 | 0.35 | 0.40 | 0.43 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Media & Entertainment | 0.32 | 0.34 | 0.36 | 0.35 | 0.36 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Communication Services | 0.44 | 0.46 | 0.48 | 0.47 | 0.47 | |
Based on: 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).
1 2024 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 312,215 ÷ 3,261,360 = 0.10
2 Click competitor name to see calculations.
- Total debt (including operating lease liability)
- The total debt showed an initial decline from 292,430 thousand US dollars in 2020 to 235,893 thousand US dollars in 2023, indicating a gradual reduction in debt levels over this period. However, in 2024, there was a significant increase in total debt to 312,215 thousand US dollars, surpassing the 2020 level.
- Total capital (including operating lease liability)
- Total capital exhibited a consistent upward trend throughout the observed years. From 1,305,575 thousand US dollars in 2020, the capital increased sharply to 3,261,360 thousand US dollars in 2024, demonstrating a substantial growth in the company's capital base.
- Debt to capital (including operating lease liability)
- The debt to capital ratio decreased from 0.22 in 2020 to 0.10 in 2023, implying a reduced reliance on debt financing as a proportion of total capital. This ratio stabilized at 0.10 in 2024 despite the rise in absolute debt, reflecting the more significant increase in total capital relative to debt.
Debt to Assets
Trade Desk Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total debt | —) | —) | —) | —) | —) | |
| Total assets | 6,111,951) | 4,888,687) | 4,380,679) | 3,577,340) | 2,753,645) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Alphabet Inc. | 0.04 | 0.04 | 0.04 | 0.04 | 0.05 | |
| Charter Communications Inc. | 0.64 | 0.67 | 0.68 | 0.64 | 0.57 | |
| Comcast Corp. | 0.37 | 0.37 | 0.37 | 0.34 | 0.38 | |
| Meta Platforms Inc. | 0.11 | 0.08 | 0.06 | 0.00 | 0.00 | |
| Netflix Inc. | 0.29 | 0.30 | 0.30 | 0.35 | 0.42 | |
| Walt Disney Co. | 0.23 | 0.23 | 0.24 | 0.27 | 0.29 | |
| Debt to Assets, Sector | ||||||
| Media & Entertainment | 0.22 | 0.22 | 0.23 | 0.23 | 0.24 | |
| Debt to Assets, Industry | ||||||
| Communication Services | 0.27 | 0.29 | 0.29 | 0.29 | 0.29 | |
Based on: 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).
1 2024 Calculation
Debt to assets = Total debt ÷ Total assets
= 0 ÷ 6,111,951 = 0.00
2 Click competitor name to see calculations.
- Total assets
- The total assets of the company have shown a consistent and significant increase over the five-year period analyzed. Starting from approximately 2.75 billion US dollars at the end of 2020, total assets rose to about 3.58 billion in 2021, then to roughly 4.38 billion in 2022. This upward trend continued in 2023, reaching nearly 4.89 billion, and further accelerated in 2024 with total assets reaching over 6.11 billion US dollars. The growth trajectory suggests expanding operations or acquisitions, reflecting a strengthening asset base.
- Total debt and debt to assets ratio
- Data for total debt and the debt to assets ratio were not provided, which limits a comprehensive evaluation of the company’s leverage and financial risk. The absence of these figures precludes analysis of the company's capital structure and its use of debt financing relative to its asset base. Without these figures, conclusions regarding financial stability and solvency cannot be drawn.
Debt to Assets (including Operating Lease Liability)
Trade Desk Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total debt | —) | —) | —) | —) | —) | |
| Operating lease liabilities, current | 64,492) | 55,524) | 52,430) | 46,149) | 37,868) | |
| Operating lease liabilities, non-current | 247,723) | 180,369) | 208,527) | 238,449) | 254,562) | |
| Total debt (including operating lease liability) | 312,215) | 235,893) | 260,957) | 284,598) | 292,430) | |
| Total assets | 6,111,951) | 4,888,687) | 4,380,679) | 3,577,340) | 2,753,645) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.05 | 0.05 | 0.06 | 0.08 | 0.11 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Alphabet Inc. | 0.07 | 0.07 | 0.08 | 0.08 | 0.09 | |
| Charter Communications Inc. | 0.65 | 0.68 | 0.68 | 0.65 | 0.58 | |
| Comcast Corp. | 0.40 | 0.39 | 0.39 | 0.37 | 0.40 | |
| Meta Platforms Inc. | 0.18 | 0.17 | 0.15 | 0.09 | 0.07 | |
| Netflix Inc. | 0.34 | 0.35 | 0.35 | 0.41 | 0.47 | |
| Walt Disney Co. | 0.25 | 0.25 | 0.26 | 0.29 | 0.31 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Media & Entertainment | 0.25 | 0.26 | 0.27 | 0.26 | 0.27 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Communication Services | 0.32 | 0.34 | 0.35 | 0.35 | 0.34 | |
Based on: 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).
1 2024 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 312,215 ÷ 6,111,951 = 0.05
2 Click competitor name to see calculations.
- Total Debt (including operating lease liability)
- The total debt shows an initial decreasing trend from 292,430 thousand US dollars in 2020 to 235,893 thousand US dollars in 2023. However, in 2024, there is a significant increase, with total debt rising to 312,215 thousand US dollars, surpassing the level observed in 2020.
- Total Assets
- Total assets demonstrate consistent growth throughout the entire period. The value increased steadily from 2,753,645 thousand US dollars in 2020 to 6,111,951 thousand US dollars in 2024, indicating substantial expansion of the company’s asset base over these years.
- Debt to Assets Ratio (including operating lease liability)
- The debt to assets ratio exhibits a downward trend from 0.11 in 2020 to 0.05 in 2023, reflecting a gradual reduction in leverage relative to asset size. Despite the increase in total debt in 2024, the ratio remains stable at 0.05, suggesting that the growth in assets has kept pace with or exceeded the increase in debt, maintaining a low level of leverage.
Financial Leverage
Trade Desk Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total assets | 6,111,951) | 4,888,687) | 4,380,679) | 3,577,340) | 2,753,645) | |
| Stockholders’ equity | 2,949,145) | 2,164,219) | 2,115,339) | 1,527,306) | 1,013,145) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 2.07 | 2.26 | 2.07 | 2.34 | 2.72 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Alphabet Inc. | 1.39 | 1.42 | 1.43 | 1.43 | 1.44 | |
| Charter Communications Inc. | 9.62 | 13.28 | 15.85 | 10.14 | 6.06 | |
| Comcast Corp. | 3.11 | 3.20 | 3.18 | 2.87 | 3.03 | |
| Meta Platforms Inc. | 1.51 | 1.50 | 1.48 | 1.33 | 1.24 | |
| Netflix Inc. | 2.17 | 2.37 | 2.34 | 2.81 | 3.55 | |
| Walt Disney Co. | 1.95 | 2.07 | 2.14 | 2.30 | 2.41 | |
| Financial Leverage, Sector | ||||||
| Media & Entertainment | 1.90 | 2.00 | 2.05 | 2.02 | 2.03 | |
| Financial Leverage, Industry | ||||||
| Communication Services | 2.38 | 2.52 | 2.60 | 2.55 | 2.55 | |
Based on: 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).
1 2024 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 6,111,951 ÷ 2,949,145 = 2.07
2 Click competitor name to see calculations.
- Total assets
- The total assets exhibited a consistent upward trend over the five-year period. Starting at approximately 2.75 billion US dollars in 2020, assets increased steadily each year, reaching over 6.11 billion US dollars by the end of 2024. This growth reflects a strong expansion in the company's resource base, with the most significant absolute increase occurring between 2023 and 2024.
- Stockholders’ equity
- Stockholders’ equity showed a prolonged growth trajectory from 1.01 billion US dollars in 2020 to nearly 2.95 billion US dollars in 2024. The equity increase was particularly marked between 2023 and 2024, indicating enhanced capital strength and potentially retained earnings or equity injections. Overall, equity grew at a faster rate than total assets, contributing positively to the company’s financial foundation.
- Financial leverage
- The financial leverage ratio decreased from 2.72 in 2020 to 2.07 in 2022, suggesting a reduction in the use of debt relative to equity during this period. In 2023, the ratio slightly increased to 2.26, indicating a moderate rise in leverage, but then it returned to 2.07 by 2024. This indicates a generally prudent capital structure management with a stable tendency toward lower leverage over the five years.
Interest Coverage
Trade Desk Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | 393,076) | 178,940) | 53,385) | 137,762) | 242,317) | |
| Add: Income tax expense | 114,226) | 89,055) | 73,985) | (15,726) | (98,414) | |
| Add: Interest expense | 1,514) | 1,656) | 4,014) | 1,030) | —) | |
| Earnings before interest and tax (EBIT) | 508,816) | 269,651) | 131,384) | 123,066) | 143,903) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 336.07 | 162.83 | 32.73 | 119.48 | — | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Alphabet Inc. | 448.07 | 279.30 | 200.80 | 263.24 | 357.16 | |
| Charter Communications Inc. | 2.43 | 2.32 | 2.64 | 2.58 | 2.12 | |
| Comcast Corp. | 5.52 | 6.01 | 3.38 | 5.46 | 4.07 | |
| Meta Platforms Inc. | 99.83 | 107.34 | 164.74 | 3,153.27 | 2,371.00 | |
| Netflix Inc. | 14.87 | 9.87 | 8.45 | 8.63 | 5.17 | |
| Walt Disney Co. | 4.66 | 3.42 | 4.41 | 2.66 | -0.06 | |
| Interest Coverage, Sector | ||||||
| Media & Entertainment | 18.87 | 14.52 | 12.35 | 16.65 | 10.20 | |
| Interest Coverage, Industry | ||||||
| Communication Services | 10.65 | 8.77 | 7.41 | 10.38 | 5.87 | |
Based on: 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).
1 2024 Calculation
Interest coverage = EBIT ÷ Interest expense
= 508,816 ÷ 1,514 = 336.07
2 Click competitor name to see calculations.
- Earnings before interest and tax (EBIT)
- The EBIT showed a fluctuating but overall strong upward trend over the analyzed period. Starting at 143.9 million USD in 2020, it decreased to 123.1 million USD in 2021, then experienced a moderate recovery to 131.4 million USD in 2022. The most significant increases occurred in 2023 and 2024, where EBIT more than doubled each year, reaching 269.7 million USD and 508.8 million USD respectively. This suggests enhanced operational profitability in the most recent years.
- Interest expense
- Interest expense data was not available in 2020 but appeared at 1.03 million USD in 2021 and increased markedly to 4.01 million USD in 2022. It then declined in 2023 and 2024 to 1.66 million USD and 1.51 million USD respectively. This indicates a peak in borrowing costs or debt-related expenses in 2022, followed by a reduction in subsequent years.
- Interest coverage ratio
- The interest coverage ratio, which measures the ability to cover interest expenses with EBIT, was extremely high throughout the available periods, demonstrating strong financial stability and low risk related to interest obligations. After an exceptionally high ratio of 119.48 in 2021, it decreased to 32.73 in 2022, mirroring the rise in interest expenses. Nevertheless, the ratio surged to 162.83 in 2023 and further to 336.07 in 2024, reflecting the significant increase in EBIT relative to interest expenses and indicating a substantial improvement in the company’s capacity to service its debt.
Fixed Charge Coverage
Trade Desk Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | 393,076) | 178,940) | 53,385) | 137,762) | 242,317) | |
| Add: Income tax expense | 114,226) | 89,055) | 73,985) | (15,726) | (98,414) | |
| Add: Interest expense | 1,514) | 1,656) | 4,014) | 1,030) | —) | |
| Earnings before interest and tax (EBIT) | 508,816) | 269,651) | 131,384) | 123,066) | 143,903) | |
| Add: Operating lease cost | 56,787) | 48,866) | 51,918) | 50,798) | 42,272) | |
| Earnings before fixed charges and tax | 565,603) | 318,517) | 183,302) | 173,864) | 186,175) | |
| Interest expense | 1,514) | 1,656) | 4,014) | 1,030) | —) | |
| Operating lease cost | 56,787) | 48,866) | 51,918) | 50,798) | 42,272) | |
| Fixed charges | 58,301) | 50,522) | 55,932) | 51,828) | 42,272) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 9.70 | 6.30 | 3.28 | 3.35 | 4.40 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Alphabet Inc. | 34.54 | 24.36 | 22.90 | 30.80 | 21.02 | |
| Charter Communications Inc. | 2.31 | 2.20 | 2.48 | 2.42 | 2.00 | |
| Comcast Corp. | 4.50 | 4.87 | 2.82 | 4.48 | 3.47 | |
| Meta Platforms Inc. | 23.99 | 19.69 | 15.18 | 31.41 | 24.62 | |
| Netflix Inc. | 8.20 | 5.64 | 5.00 | 5.46 | 3.65 | |
| Walt Disney Co. | 3.53 | 2.71 | 3.25 | 2.07 | 0.32 | |
| Fixed Charge Coverage, Sector | ||||||
| Media & Entertainment | 11.59 | 9.04 | 7.67 | 10.38 | 6.76 | |
| Fixed Charge Coverage, Industry | ||||||
| Communication Services | 6.21 | 5.12 | 4.13 | 5.70 | 3.61 | |
Based on: 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).
1 2024 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 565,603 ÷ 58,301 = 9.70
2 Click competitor name to see calculations.
- Earnings before fixed charges and tax
-
This metric shows an overall upward trend over the five-year period. Initially, it decreased slightly from 186,175 thousand USD in 2020 to 173,864 thousand USD in 2021, indicating some short-term decline. However, it recovered and stabilized around 183,302 thousand USD in 2022 before experiencing a significant increase in the subsequent years, reaching 318,517 thousand USD in 2023 and peaking at 565,603 thousand USD in 2024. This pattern suggests improving operational performance or growing profitability before accounting for fixed charges and taxes.
- Fixed charges
-
Fixed charges generally exhibited an increasing trend over the period. Starting at 42,272 thousand USD in 2020, these expenses rose steadily to 51,828 thousand USD in 2021 and 55,932 thousand USD in 2022. There was a slight decrease to 50,522 thousand USD in 2023, followed by another increase to 58,301 thousand USD in 2024. The fluctuations suggest some variability in fixed cost obligations, though the overall trend is upward.
- Fixed charge coverage ratio
-
The fixed charge coverage ratio, which measures the ability to cover fixed charges from earnings before fixed charges and tax, showed a decline from 4.4 in 2020 to 3.35 in 2021 and further to 3.28 in 2022. This decline indicates a weakening capacity to cover fixed costs during that period. However, a marked recovery occurred in the last two years, with the ratio increasing sharply to 6.3 in 2023 and then to 9.7 in 2024. This significant improvement reflects enhanced earnings relative to fixed charges and suggests stronger financial flexibility and reduced risk associated with fixed financial obligations.
- Summary
-
The data indicate an initial period of pressure on earnings before fixed charges and tax during 2020-2022, accompanied by rising fixed charges and decreasing coverage ratio. This phase was followed by robust growth in earnings in 2023 and 2024 that outpaced the increases in fixed charges, dramatically improving the fixed charge coverage ratio. The overall trend in the latest two years points to strengthened operational profitability and improved ability to meet fixed financial commitments, reflecting favorable financial conditions and reduced leverage risk.