Trade Desk Inc. (NASDAQ:TTD)

The analysis of the financial leverage and debt-related ratios over the reported periods reveals several notable trends. The ratios provided pertain to debt metrics that include operating lease liabilities, allowing for a comprehensive view of the company's financial structure.

Debt to Equity (including operating lease liability)

This ratio shows a consistent downward trend from 0.26 in the first quarter of 2021 to a low of around 0.11 by the end of 2023 and into 2024. Subsequently, there is a slight upward movement observed, reaching 0.14 by the third quarter of 2025. This pattern suggests a general reduction in reliance on debt relative to equity over the initial years, followed by a mild increase towards the later periods.

Debt to Capital (including operating lease liability)

Similar to the debt to equity ratio, the debt to capital ratio decreases steadily from 0.21 in early 2021 to approximately 0.10 by late 2023 and early 2024. A modest increment is observed thereafter, moving towards 0.13 by the third quarter of 2025. This indicates an improved capital structure with a reduced share of debt financing, which slightly reverts in the later periods.

Debt to Assets (including operating lease liability)

This ratio declines from 0.11 in the first quarter of 2021 to a low consistent level around 0.05 through 2023 and 2024, with a slight increase to 0.06 by the end of the observed timeline. The decreasing trend implies that the company has reduced the proportion of debt in relation to its total assets, stabilizing at a relatively low level before a marginal rise.

Financial Leverage

Financial leverage ratios fluctuate moderately over the reported periods. Initially, there is a decrease from 2.40 in the first quarter of 2021 to 2.05 in late 2022. A period of relative stability follows, with ratios around 2.1 to 2.15 until mid-2024. Subsequently, there is a gradual increase to 2.28 by the third quarter of 2025. This suggests that while the company managed to lower its financial leverage in the earlier years, a change in strategy or market conditions led to a moderate rise in leverage towards the later periods.

Overall, the trends suggest a strategic reduction in debt burden relative to equity, capital, and assets over the initial years, reflecting improved financial prudence or deleveraging efforts. The slight increase in debt ratios and financial leverage in the last few reported quarters may indicate a change in capital structure approach, possibly reflecting increased borrowing or operational adjustments. The company’s financial structure remains moderate in terms of leverage, with all debt ratios maintaining generally low levels, indicating a cautious approach to utilizing debt financing.

The analysis of the available financial data reveals the following key trends and observations:

Stockholders’ Equity

The stockholders’ equity shows a consistent upward trend from March 31, 2021 to December 31, 2024, increasing from approximately US$1,084 million to around US$2,949 million. This represents a significant growth in equity over the period, indicating an accumulation of retained earnings and/or equity issuance.

There is a noticeable decline in stockholders’ equity after reaching a peak in December 31, 2024, with values decreasing over the subsequent quarters up until September 30, 2025. The decrease from December 31, 2024 to September 30, 2025 suggests some capital outflow, losses, or share repurchases during this timeframe.

Overall, the long-term trend in stockholders’ equity is positive, which generally indicates strengthening of the company’s financial base despite the recent short-term dip.

Total Debt

No data points are provided for total debt across the periods, which limits the ability to analyze debt trends or leverage directly.

Debt to Equity Ratio

Similarly, the absence of any values for the debt to equity ratio prevents assessment of the company’s leverage position or its changes over time.

In summary, the equity base of the company expanded robustly over the majority of the recorded periods, reflecting growth and potentially strong operational results or financing activities. However, the latter period shows a retrenchment in equity levels, which could merit further investigation into causes such as dividend distributions, share buybacks, or financial stresses. Due to lack of debt information, it is not possible to comment on the company's debt management or capital structure dynamics comprehensively.

The analysis of the quarterly financial data over the reported periods reveals several key trends in the company's capital structure and leverage. The total debt, inclusive of operating lease liabilities, demonstrates an overall moderate fluctuation with a general decline from the beginning of the period up to late 2023, followed by a noticeable increase from early 2024 onwards.

Total Debt (including operating lease liability)

Initially, the company experienced a reduction in total debt from approximately $283.6 million in the first quarter of 2021 to about $235.9 million by the end of 2023. After this low point, total debt began to rise steadily, reaching roughly $376.0 million by the third quarter of 2025. This indicates a strategic shift in financing or operational needs, possibly reflecting increased borrowing or lease commitments during the later periods.

Stockholders’ Equity

Stockholders' equity showed a consistent and strong upward trend throughout most of the timeline. Starting from approximately $1.08 billion at the start of 2021, equity grew steadily and peaked at nearly $2.95 billion by early 2025. Despite slight decreases in some later quarters, the overall upward progression suggests robust retained earnings and possibly capital infusions, which strengthen the company's net asset base.

Debt to Equity Ratio (including operating lease liability)

The debt-to-equity ratio presents a clear declining trend from 0.26 at the start of 2021 to a low point near 0.11 between late 2023 and early 2024. This reduction signifies improving financial leverage, with equity growing faster than debt. However, from 2024 onwards, the ratio increases moderately to around 0.14 by late 2025, correlating with the rising total debt. Despite this increase, the ratio remains relatively low, indicating the company maintains a conservative leverage profile.

Overall, the company exhibits a strengthening equity position accompanied by controlled leverage through most of the observed timeframe. The later increase in total debt and the corresponding slight rise in leverage ratio may warrant further investigation to understand the underlying causes, such as new borrowing for expansion, acquisitions, or changes in lease obligations. Nonetheless, the financial structure appears stable, with equity providing a solid buffer against debt risk throughout the periods analyzed.

Total Capital

The total capital demonstrates a generally upward trajectory from the first quarter of 2021 through to the end of 2024. Beginning at approximately 1.08 billion US dollars in March 2021, it steadily increased each quarter, reaching a peak of around 2.95 billion US dollars by December 2024. This reflects significant growth in the company's capital base over this period.

However, in the first three quarters of 2025, there is a slight decline in total capital, reducing from approximately 2.72 billion US dollars in March 2025 to about 2.60 billion US dollars in September 2025. Despite this drop, the level remains considerably higher than at the start of the data range.

Total Debt and Debt to Capital Ratio

Data for total debt and debt to capital ratio are completely missing across all periods, which impedes analysis of the company’s leverage and capital structure. Without this information, it is not possible to assess the relationship between debt and total capital or evaluate changes in financial risk related to indebtedness.

Summary

Overall, the company shows a strong and consistent increase in total capital over almost four years, suggesting growth and possibly reinvestment or capital inflow. The absence of debt figures limits the ability to analyze financial leverage and risk. The slight decline in capital in early 2025 warrants monitoring to understand if it signals a reversal of growth trends or a temporary adjustment.

Total Debt (Including Operating Lease Liability)

The total debt level initially showed a modest decline from 283,587 thousand US dollars at the end of March 2021 to 260,957 thousand US dollars by December 2021. This downward trend continued gradually through 2022 and early 2023, reaching a low point of 235,893 thousand US dollars in December 2022. However, beginning in early 2024, the debt level reversed direction and exhibited a consistent upward trajectory, rising to 375,977 thousand US dollars by September 2025. This indicates increased leverage or borrowing activity in the latter periods.

Total Capital (Including Operating Lease Liability)

Total capital demonstrated a steady and significant growth over the period under review. Starting from 1,367,900 thousand US dollars in March 2021, it increased continuously, peaking at 3,261,360 thousand US dollars in December 2024. Thereafter, a slight contraction occurred, with capital contracting to 2,976,763 thousand US dollars by September 2025. Despite the late period decrease, the overall long-term trend indicates substantial capital expansion.

Debt to Capital Ratio (Including Operating Lease Liability)

The debt to capital ratio showed a general declining trend from 0.21 in March 2021 to a low of approximately 0.10 through late 2022 and most of 2023, reflecting reduced reliance on debt relative to capital growth. Starting early 2024, the ratio stabilized around 0.10 to 0.11, before edging slightly higher to 0.13 by September 2025. This slight increase aligns with the observed rise in total debt and a small decline in total capital, suggesting a cautious but modest increase in leverage in the most recent quarters.

Summary Insight

Overall, the company’s financial structure appears to have strengthened between 2021 and 2023, as indicated by declining leverage ratios and controlled debt levels amidst expanding capital. Beginning in 2024, a strategic shift toward higher debt usage is observable, accompanied by a slight contraction in capital base. This change may reflect altered financing strategies or responses to market conditions, warranting further investigation into the drivers behind increased debt and its implications for financial risk.

The analysis of the available financial data reveals the following trends and insights regarding the company's financial position over the periods presented.

Total assets (US$ in thousands)

The total assets demonstrate a generally upward trend from March 31, 2021, through December 31, 2025, despite some fluctuations. Initially, total assets increased steadily from approximately 2.60 billion in early 2021 to about 3.58 billion by the end of 2021. This growth continued into 2022, reaching a peak near 4.38 billion by December 31, 2022.

Following this peak, total assets showed slight volatility, decreasing to approximately 4.00 billion in March 2023 before resuming their upward progression. Throughout 2023 and 2024, assets steadily increased, surpassing 6.11 billion by December 31, 2024. The most recent data point from September 30, 2025, indicates a slight dip to approximately 5.94 billion, though still significantly higher than the early 2021 levels.

This pattern suggests an overall expansion of the asset base with periods of minor consolidation or revaluation.

Total debt and Debt to assets ratio

There are no reported values for total debt or debt to assets ratio across the entire timeframe. The lack of data in these categories prevents any analysis or inference related to the company’s leverage, financial risk, or capital structure changes over the observed periods.

In summary, the most salient finding is the consistent increase in total assets, reflecting growth and potential investment or operational expansion. However, the absence of debt-related data limits a fuller assessment of the financial leverage and risk profile. The company appears to be increasing its asset base substantially, but further information on liabilities would be necessary to evaluate its solvency and financial strategy comprehensively.

The analysis of the quarterly financial data reveals several important trends related to the company's debt levels, asset base, and leverage ratio over the observed periods.

Total Debt (including operating lease liability)

The total debt demonstrates a fluctuating but generally increasing pattern over time. Initially, debt starts at approximately 283.6 million USD and exhibits a slight decline through 2021 and early 2022, reaching a low around 235.9 million USD by the end of 2022. From early 2023 onwards, debt levels rise steadily, reaching nearly 376.0 million USD by the third quarter of 2025. This notable increase in debt during the latter periods suggests a strategic buildup of liabilities or financing for expansion.

Total Assets

Total assets illustrate a strong upward trajectory throughout the period. Beginning at around 2.6 billion USD in early 2021, the asset base grows considerably, with some fluctuations, peaking over 6.1 billion USD at the end of 2024 before slightly declining around 5.9 billion USD in mid to late 2025. This sustained asset growth indicates significant investment and expansion in company resources, reflecting ongoing capital expenditure and acquisition activities.

Debt to Assets Ratio (including operating lease liability)

The debt to assets ratio shows a consistent downward trend from early 2021 through the end of 2023, dropping from 0.11 to 0.05. This decline indicates an improvement in the company's leverage position, as assets are growing at a pace that exceeds debt accumulation, reducing financial risk. However, from early 2024 onward, the ratio stabilizes around 0.05 to 0.06, with a slight uptick towards mid-2025. This suggests a period of relatively stable leverage, despite the increase in absolute debt, likely due to parallel growth in assets.

In summary, the data shows a company experiencing significant asset growth accompanied by carefully managed leverage. While debt levels have risen notably in recent periods, the robust asset growth has maintained a relatively low and stable debt-to-assets ratio, indicating prudent financial management and a solid balance sheet position through the periods analyzed.

The financial data demonstrates the following trends in the key balance sheet aggregates and leverage ratio over the observed periods:

Total Assets

Total assets exhibit a general upward trajectory from March 2021 through March 2025, increasing from approximately $2.60 billion to around $5.94 billion. Some fluctuations are present, particularly between December 2021 and March 2023, where assets appear to plateau and slightly decline before resuming growth. This overall expansion reflects an increasing scale of resources controlled by the entity over the analyzed timeframe.

Stockholders’ Equity

Stockholders’ equity similarly advances across the periods, rising from about $1.08 billion to a peak near $2.94 billion in December 2024, before seeing a modest decrease to approximately $2.60 billion by September 2025. The steady equity growth through most periods indicates sustained capital retention or profit generation, although the slight decline towards the end may signal distributions, losses, or other equity reductions.

Financial Leverage Ratio

The financial leverage ratio, defined as total assets divided by stockholders’ equity, trends downward from 2.4 in early 2021 to around 2.05 in late 2021 and mid-2022, suggesting a modest reduction in the reliance on debt financing relative to equity during that interval. Post mid-2022, the ratio fluctuates slightly but generally remains between 2.05 and 2.28, indicating a relatively stable leverage position with minor variations. The slight increase towards 2.28 by late 2025 points to a modest incremental reliance on liabilities relative to equity in the most recent periods.

In summary, the company has expanded its asset base substantially over the approximately four-year span, accompanied by growth in equity capital. The leverage ratio reveals a moderate use of financial leverage that remains fairly consistent, with a slight increase noted in the latest periods. These patterns highlight a strategy of balanced growth with maintained risk exposure related to funding structure.