Trade Desk Inc. (NASDAQ:TTD)

Net Fixed Asset Turnover

The net fixed asset turnover ratio exhibited a consistent upward trend from 7.22 in 2020 to a peak of 12.06 in 2023, indicating improved efficiency in generating revenue from fixed assets. However, in 2024, there was a slight decline to 11.68, suggesting a marginal reduction in asset utilization efficiency compared to the previous year.

Net Fixed Asset Turnover Including Operating Lease, Right-of-Use Asset

This ratio showed steady growth from 2.3 in 2020 to 5.42 in 2023, reflecting an increasing contribution from leased right-of-use assets in revenue generation. In 2024, the ratio decreased slightly to 5.17, signaling a minor decrease in turnover efficiency when including leased assets.

Total Asset Turnover

Total asset turnover ratio consistently increased from 0.30 in 2020 to 0.40 in both 2023 and 2024. This pattern suggests a gradual, sustained improvement in the company's ability to generate revenue from its entire asset base, stabilizing at 0.40 in the final two years.

Equity Turnover

The equity turnover ratio demonstrated a downward trend from 0.83 in 2020 to 0.75 in 2022, signaling a reduction in the efficiency of equity usage for generating sales in those years. However, a rebound occurred in 2023 with an increase to 0.90, followed by a slight decrease to 0.83 in 2024, indicating some volatility but an overall recovery in equity utilization efficiency towards the end of the period.

The financial data demonstrates a clear upward trend in revenue over the five-year period. Revenue increased from approximately $836 million in 2020 to nearly $2.44 billion in 2024, indicating sustained growth and strong market performance.

Property and equipment, net, showed a general increase with some fluctuations. Starting at about $116 million in 2020, the figure rose steadily to around $174 million in 2022, declined slightly to approximately $161 million in 2023, and then increased again to roughly $209 million in 2024. This pattern suggests periods of investment and possible asset disposals or revaluations.

The net fixed asset turnover ratio improved consistently from 7.22 in 2020 to 12.06 in 2023, before slightly decreasing to 11.68 in 2024. This ratio indicates enhanced efficiency in utilizing fixed assets to generate revenue, despite a minor dip in the last year. Overall, the increasing ratio reflects improvements in operational effectiveness and asset management over the period under review.

The financial data reveals a consistent upward trajectory in revenue over the five-year period. Revenue increased substantially from approximately 836 million US dollars at the end of 2020 to nearly 2.44 billion US dollars by the end of 2024. This represents a nearly threefold growth, indicating strong sales expansion and market demand.

Property and equipment, net, including operating lease and right-of-use assets, showed moderate fluctuations. The asset value slightly increased from around 364 million US dollars in 2020 to approximately 394 million in 2022, then experienced a decline in 2023 before rising significantly to about 473 million US dollars in 2024. This pattern suggests some variability in capital investments or asset revaluation, with a notable increase in the most recent year, potentially reflecting new acquisitions or upgrades.

The net fixed asset turnover ratio, which measures revenue generated per unit of fixed asset value, exhibited a marked improvement from 2.3 in 2020 to 5.17 in 2024. The ratio peaked at 5.42 in 2023 before a slight dip the following year. This increase indicates enhanced efficiency in utilizing fixed assets to generate revenue over time, even as property and equipment values fluctuated.

Revenue

Strong and consistent growth, nearly tripling over five years.

Property and equipment, net

Moderate growth with fluctuations, significant increase in the latest year.

Net fixed asset turnover ratio

Substantial improvement suggesting increased asset utilization efficiency, peaking in 2023 with a slight decrease in 2024.

Revenue Trends

Over the five-year period, revenue exhibited consistent growth each year. Starting at approximately 836 million US dollars in 2020, revenue increased to nearly 1.2 billion in 2021, followed by a rise to about 1.58 billion in 2022. This upward trajectory continued to roughly 1.95 billion in 2023 and further expanded to approximately 2.44 billion by the end of 2024. The growth rate suggests a robust expansion of the company's sales or service delivery capabilities annually.

Total Assets Trends

Total assets also demonstrated a steady increase across the years analyzed. Beginning at around 2.75 billion US dollars in 2020, total assets grew to approximately 3.58 billion in 2021 and further to about 4.38 billion in 2022. This growth persisted, reaching roughly 4.89 billion in 2023 and culminating near 6.11 billion by 2024. This pattern indicates ongoing investment in asset base or accumulation of resources supporting business operations.

Total Asset Turnover Trends

The total asset turnover ratio gradually increased over the period, moving from 0.30 in 2020 to 0.33 in 2021. This ratio continued to rise to 0.36 in 2022 and reached 0.40 by 2023, maintaining the same level in 2024. The improvement in this ratio indicates enhanced efficiency in utilizing assets to generate revenue. Initially, the company had a lower asset turnover, but over time, it managed to leverage its assets more effectively, achieving higher revenue per unit of assets.

Overall Analysis

The combined trends of increasing revenue and total assets, along with the improving total asset turnover ratio, suggest a positive development pattern. The company not only expanded its operational scale but also managed to use its assets more efficiently to generate sales. The stabilization of the asset turnover ratio at 0.40 in the final two years could indicate a plateau in asset utilization efficiency or a strategic balance between asset growth and revenue generation.

The financial data indicates a consistent and significant growth in revenue over the five-year period. Revenue increased steadily from approximately $836 million in 2020 to about $2.44 billion in 2024, reflecting strong sales expansion and possibly successful market penetration or product demand increase.

Stockholders’ equity also shows a positive upward trend throughout the same period. It rose from roughly $1.01 billion in 2020 to nearly $2.95 billion in 2024, more than doubling over the five years. This growth in equity suggests an accumulation of retained earnings or additional capital investments, contributing to the company’s strengthened financial position.

The equity turnover ratio, which measures the efficiency with which the company uses equity to generate revenue, presents some variability. It started at 0.83 in 2020 and showed a slight decrease to 0.75 in 2022, indicating a mild dip in operational efficiency during those years. However, the ratio increased significantly to 0.90 in 2023 before declining again to 0.83 in 2024, returning to its initial level. This fluctuation implies variations in how effectively the company converted equity into sales, with a peak efficiency in 2023.

Revenue Trend

Consistent growth each year over the five-year span with increasing sales figures.

Stockholders’ Equity Trend

Steady increase, indicating stronger financial stability and likely retained earnings growth or capital infusion.

Equity Turnover Ratio Trend

Some year-to-year fluctuation but generally around the level of 0.8–0.9, showing stable operational efficiency with a peak in 2023.

In summary, the data portrays a firm with robust revenue and equity growth, accompanied by relatively stable efficiency in utilizing equity to generate revenue, despite some minor fluctuations. This suggests a positive momentum in business operations and financial health over the observed period.