Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Statement of Comprehensive Income
- Cash Flow Statement
- Common-Size Income Statement
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Capital Asset Pricing Model (CAPM)
- Selected Financial Data since 2016
- Return on Assets (ROA) since 2016
- Total Asset Turnover since 2016
- Price to Earnings (P/E) since 2016
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Long-term Activity Ratios (Summary)
Trade Desk Inc., long-term (investment) activity ratios
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
Based on: 10-K (reporting date: 2025-12-31), 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).
An examination of long-term activity ratios reveals fluctuating trends in asset utilization efficiency between 2021 and 2025. Generally, the company demonstrates an ability to generate revenue from its assets, though the efficiency varies across different measures and over time.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio initially increased from 8.81 in 2021 to 12.06 in 2023, indicating improving efficiency in generating revenue from fixed assets. However, this was followed by a decline to 11.68 in 2024 and a more substantial decrease to 7.30 in 2025. This suggests a potential weakening in the relationship between revenue and net fixed assets towards the end of the period.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- When considering operating leases and right-of-use assets, the net fixed asset turnover ratio exhibits a similar pattern of growth followed by decline. The ratio rose from 3.23 in 2021 to 5.42 in 2023, then decreased to 5.17 in 2024 and 3.92 in 2025. The inclusion of these assets results in lower turnover figures compared to the standard net fixed asset turnover, highlighting the impact of lease obligations on asset utilization.
- Total Asset Turnover
- The total asset turnover ratio demonstrates a consistent, albeit gradual, increase from 0.33 in 2021 to 0.47 in 2025. This indicates a strengthening ability to generate revenue from all assets over the five-year period. The increase, while positive, remains relatively modest.
- Equity Turnover
- The equity turnover ratio shows volatility. It decreased slightly from 0.78 in 2021 to 0.75 in 2022, then increased to 0.90 in 2023, decreased to 0.83 in 2024, and finally rose significantly to 1.17 in 2025. This suggests a changing relationship between revenue and equity, with a notable increase in revenue generated per dollar of equity in the final year of the observed period.
Overall, the trends suggest a period of improving asset utilization efficiency up to 2023, followed by a mixed performance in 2024 and 2025. The decline in net fixed asset turnover, despite the increase in total asset turnover, warrants further investigation to understand the underlying drivers.
Net Fixed Asset Turnover
Trade Desk Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | ||||||
| Property and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Walt Disney Co. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Media & Entertainment | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Communication Services | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Net fixed asset turnover = Revenue ÷ Property and equipment, net
= ÷ =
2 Click competitor name to see calculations.
The net fixed asset turnover ratio exhibits fluctuating performance over the five-year period. Initially, the ratio demonstrates a modest increase, followed by a significant surge, and concludes with a notable decline.
- Overall Trend
- The ratio increased from 8.81 in 2021 to 9.08 in 2022, indicating a slight improvement in the efficiency of utilizing fixed assets to generate revenue. A substantial increase to 12.06 was observed in 2023, suggesting a considerable enhancement in asset utilization. However, this positive trend reversed in subsequent years, with the ratio decreasing to 11.68 in 2024 and further declining to 7.30 in 2025.
- Revenue Impact
- Revenue consistently increased throughout the period, rising from US$1,196,467 thousand in 2021 to US$2,896,284 thousand in 2025. This revenue growth contributed to the initial increases in the net fixed asset turnover ratio. However, the rate of revenue increase did not outpace the growth in net property, plant, and equipment in the later years, contributing to the ratio’s decline.
- Property, Plant, and Equipment (PP&E) Impact
- Net property and equipment experienced growth throughout the period, but not consistently. It increased from US$135,856 thousand in 2021 to US$173,759 thousand in 2022, then decreased to US$161,422 thousand in 2023. A subsequent increase to US$209,332 thousand in 2024 was followed by a substantial rise to US$396,819 thousand in 2025. The significant increase in PP&E in 2025, coupled with continued revenue growth, appears to be the primary driver of the ratio’s decline.
- Ratio Interpretation
- The initial increases in the net fixed asset turnover ratio suggest improved efficiency in converting fixed asset investments into revenue. The subsequent decline, particularly the substantial decrease in 2025, indicates that the company is generating less revenue per dollar of fixed assets. This could be due to increased investment in fixed assets without a proportional increase in revenue, or potentially underutilization of existing assets.
The observed fluctuations warrant further investigation to determine the underlying causes and assess the long-term implications for asset utilization and profitability.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Trade Desk Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | ||||||
| Property and equipment, net | ||||||
| Operating lease assets | ||||||
| Property and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Walt Disney Co. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Media & Entertainment | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Communication Services | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenue ÷ Property and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
The net fixed asset turnover ratio, calculated using property and equipment net of accumulated depreciation and including operating lease right-of-use assets, demonstrates a fluctuating trend over the five-year period. Revenue consistently increased year-over-year, while the value of net fixed assets exhibited more variability.
- Overall Trend
- The ratio initially increased significantly from 3.23 in 2021 to 4.00 in 2022, indicating improved efficiency in generating revenue from fixed assets. This upward momentum continued into 2023, reaching a peak of 5.42. However, the ratio decreased to 5.17 in 2024 and further declined to 3.92 in 2025.
- Revenue Growth
- Revenue experienced consistent growth throughout the period, increasing from approximately US$1.2 billion in 2021 to nearly US$2.9 billion in 2025. This consistent revenue expansion suggests strong demand for the company’s services.
- Fixed Asset Value
- The value of property and equipment, including operating lease right-of-use assets, increased from US$370 million in 2021 to US$739 million in 2025. The increase was not linear, with a decrease observed between 2022 and 2023. The substantial increase in fixed assets in 2024 and 2025 may explain the subsequent decline in the net fixed asset turnover ratio.
- Ratio Interpretation
- The initial increase in the net fixed asset turnover ratio suggests the company was becoming more efficient at utilizing its fixed assets to generate revenue. The subsequent decline in 2024 and 2025, despite continued revenue growth, indicates that the growth in fixed assets outpaced revenue growth. This could be due to investments in new assets that have not yet reached full productive capacity, or a shift in the company’s asset base.
The ratio’s movement in 2025, returning to a level closer to that of 2022, warrants further investigation to determine the sustainability of this trend and its potential impact on future profitability.
Total Asset Turnover
Trade Desk Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Walt Disney Co. | ||||||
| Total Asset Turnover, Sector | ||||||
| Media & Entertainment | ||||||
| Total Asset Turnover, Industry | ||||||
| Communication Services | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Total asset turnover = Revenue ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The total asset turnover ratio exhibits a clear upward trend over the five-year period. Beginning at 0.33 in 2021, the ratio increased to 0.47 in 2025. This indicates a growing efficiency in utilizing assets to generate revenue.
- Total Asset Turnover Trend
- From 2021 to 2022, the ratio experienced a moderate increase, moving from 0.33 to 0.36. This suggests a slight improvement in asset utilization during this period.
- The rate of increase accelerated between 2022 and 2023, with the ratio rising to 0.40. This indicates a more substantial gain in efficiency.
- The ratio remained stable at 0.40 between 2023 and 2024, suggesting that asset utilization plateaued during this year. Revenue and total assets both increased, but at similar rates.
- A significant increase was observed between 2024 and 2025, with the ratio reaching 0.47. This represents the largest single-year increase in the observed period and demonstrates a considerable improvement in the company’s ability to generate revenue from its assets.
The consistent upward movement in the total asset turnover ratio suggests improving operational efficiency and effective asset management. The most recent increase, from 2024 to 2025, is particularly noteworthy and warrants further investigation to understand the drivers behind this enhanced performance.
Equity Turnover
Trade Desk Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | ||||||
| Stockholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Alphabet Inc. | ||||||
| Comcast Corp. | ||||||
| Meta Platforms Inc. | ||||||
| Netflix Inc. | ||||||
| Walt Disney Co. | ||||||
| Equity Turnover, Sector | ||||||
| Media & Entertainment | ||||||
| Equity Turnover, Industry | ||||||
| Communication Services | ||||||
Based on: 10-K (reporting date: 2025-12-31), 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).
1 2025 Calculation
Equity turnover = Revenue ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The equity turnover ratio exhibits a fluctuating pattern over the five-year period. Initial values indicate a moderate level of equity utilization, followed by an increase and subsequent stabilization, culminating in a notable rise in the final year.
- Equity Turnover Trend
- The equity turnover ratio began at 0.78 in 2021, decreasing slightly to 0.75 in 2022. A positive shift occurred in 2023, with the ratio increasing to 0.90. This upward momentum was partially offset in 2024, as the ratio decreased to 0.83. However, 2025 saw a significant increase, reaching 1.17, representing the highest value within the observed period.
The initial decline in the ratio from 2021 to 2022 suggests a less efficient utilization of stockholders’ equity to generate revenue during that timeframe. The subsequent increase in 2023 indicates improved efficiency. The slight decrease in 2024 could be attributed to a slower growth in revenue relative to equity, or a temporary increase in equity. The substantial increase in 2025 suggests a significant improvement in the company’s ability to generate revenue from its equity base.
- Revenue and Equity Relationship
- Revenue consistently increased throughout the period, rising from US$1,196,467 thousand in 2021 to US$2,896,284 thousand in 2025. Stockholders’ equity also generally increased, although it experienced a decrease between 2023 and 2024. The equity turnover ratio’s movement reflects the interplay between these two factors. The substantial increase in the ratio in 2025 is likely driven by the continued revenue growth combined with a slight decrease in stockholders’ equity.
Overall, the trend suggests a strengthening relationship between revenue generation and equity utilization, particularly in the most recent year. Further investigation into the factors driving the changes in both revenue and equity would be beneficial to fully understand the dynamics influencing the equity turnover ratio.