Trade Desk Inc. (NASDAQ:TTD)

Net Fixed Asset Turnover

The net fixed asset turnover ratio first appears in the period ending December 31, 2020, at 7.22. It demonstrates an overall upward trend through to December 31, 2023, reaching a peak of 13.65. Following this peak, the ratio declines, falling to 8.64 by June 30, 2025. This pattern suggests increasing efficiency in using fixed assets to generate revenue until late 2023, after which efficiency decreases significantly.

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

This adjusted turnover measure begins at 2.3 for the period ending December 31, 2020, and steadily increases over the following years, reaching a high of 5.83 by December 31, 2023. Similar to the net fixed asset turnover without adjustments, this ratio declines thereafter, ending at 4.62 in June 30, 2025. The measure indicates improved utilization of fixed assets including leased assets until late 2023, with a subsequent reduction in efficiency.

Total Asset Turnover

The total asset turnover ratio shows a moderate increase starting at 0.3 for the period ending December 31, 2020, rising to a peak of 0.45 by March 31, 2025, and maintaining this level through June 30, 2025. Although some minor fluctuations are noted, the overall trend signifies gradual improvement in the capability to generate sales from total assets over the observed periods.

Equity Turnover

The equity turnover ratio starts at 0.83 on December 31, 2020, and remains relatively stable with slight fluctuations around this level until the period ending March 31, 2022, where it decline to 0.75. Subsequently, a general upward trend is observed, reaching 0.95 by March 31, 2024. The ratio slightly fluctuates afterward but remains close to this elevated level, ending at 0.99 by June 30, 2025. This indicates a steadily improving efficiency in utilizing shareholder equity to generate revenue.

Revenue Trends

Revenue demonstrates a generally upward trend over the observed periods, showing significant growth from US$160,660 thousand in March 2020 to US$694,039 thousand in June 2025. There are fluctuations within quarters, but the overall trajectory is positive. Notable increases occurred between December 2020 and December 2021, and again from December 2022 through to June 2025. Some quarters display a slight dip or slower growth, such as March 2023 and March 2025, but the overall growth trend is consistent.

Property and Equipment, Net

The net value of property and equipment exhibits a rising trend as well, starting at US$78,877 thousand in March 2020 and reaching US$309,975 thousand by June 2025. This indicates ongoing investment in fixed assets. The increases are fairly steady with minor fluctuations, including a slight dip between December 2021 and March 2023. The most significant increases are observed after June 2024, signaling potentially accelerated capital expenditure or acquisitions of fixed assets.

Net Fixed Asset Turnover Ratio

The net fixed asset turnover ratio presents a strong upward movement from 7.22 in September 2020 to a peak of 13.65 in December 2023, suggesting improved efficiency in generating revenue from fixed assets. Following this peak, the ratio declines gradually to 8.64 by June 2025, indicating a reduction in asset utilization efficiency. The initial rise aligns with growing revenue and moderate asset base growth, while the decline towards the later periods may reflect faster asset accumulation relative to revenue growth or inefficiencies emerging in asset usage.

Overall Analysis

The data reflects robust revenue growth accompanied by increased investment in property and equipment, implying expansion and scale-up efforts. The net fixed asset turnover ratio shows improving operational efficiency initially, but a tapering off in later years, which could warrant closer examination of asset management strategies. The combination of rising fixed assets and sustained revenue growth suggests a capital-intensive phase aiming to support larger operational capacities.

The financial data reveals several noteworthy trends over the analyzed periods.

Revenue

Revenue demonstrates a clear upward trajectory, increasing from US$160,660 thousand in March 2020 to a peak of US$741,012 thousand in December 2024. Despite some quarterly fluctuations, the overall growth is consistent and substantial, with the revenue almost quintupling over this period. Notably, revenue dips slightly in early 2025 quarters but remains significantly higher than in earlier years, indicating strong business expansion.

Property and Equipment, Net

The net value of property and equipment, including operating lease and right-of-use assets, shows moderate growth from US$279,119 thousand in March 2020 to US$579,284 thousand by June 2025. The growth is not as steep as revenue but still indicates ongoing investment in long-term assets. There are periods of minor decline or stabilization, particularly around 2021 and early 2023, but the general trend is upward. This suggests the company is steadily increasing or maintaining its asset base to support operations.

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

The net fixed asset turnover ratio, available from December 2020 onward, shows a notable upward trend, beginning at 2.3 and reaching a peak of 5.83 in June 2024. This metric indicates improving efficiency in using fixed assets to generate revenue. After peaking, the ratio experiences a slight decline in the last few quarters, settling around 4.62 by June 2025. Despite the recent decrease, the ratio remains substantially higher than at the start of the period, highlighting enhanced asset utilization.

In summary, revenue growth has been robust and sustained, supported by gradual increases in property and equipment investment. The rising net fixed asset turnover ratio points to improved operational efficiency, with the company generating more revenue per unit of fixed asset over time. Some recent softening in asset turnover ratio suggests a need to monitor asset utilization closely going forward.

The quarterly financial data reveals several noteworthy trends in the company's operational and asset management performance over the observed periods.

Revenue Trends

Revenue exhibits significant growth over the observed timeline, despite some fluctuations in short-term quarters. Starting at approximately $160.7 million at the end of March 2020, there is an initial dip in the following quarter to about $139.4 million. Subsequently, the revenue demonstrates a strong upward momentum, reaching nearly $490.7 million by the end of December 2022. The growth trajectory continues with some minor quarterly variations, reaching over $741 million by the end of December 2024.
This pattern indicates robust expansion in sales or service income, reflecting increased demand or successful market penetration. However, some quarters show temporary declines, suggesting seasonal or cyclical influences, or variability in contract timing.

Total Assets Trends

Total assets steadily increase through the timeline, starting at approximately $1.77 billion in March 2020 and progressively rising to a peak of nearly $6.11 billion by the end of December 2024. This demonstrates consistent investment in asset base growth, possibly through acquisitions, capital expenditures, or increased working capital.
Between quarters, asset growth seems stable without abrupt spikes or drops, suggesting controlled capital deployment and expansion strategies aligned with business growth.

Total Asset Turnover

The total asset turnover ratio—a measure of how efficiently assets generate revenue—starts at 0.3 in September 2020 and generally trends upward. By March 2025, it reaches approximately 0.45, indicating improving operational efficiency in generating revenue from the asset base.
This rising ratio suggests enhanced utilization of the company’s assets or improved revenue productivity. Although some quarterly fluctuations are visible, the overall trend points toward more effective asset management relative to revenue growth.

The revenue figures exhibit a general upward trajectory over the period analyzed. Starting from 160,660 thousand US dollars in March 2020, revenue experienced some volatility with noticeable dips in mid-2020 but then steadily increased, reaching a peak of 741,012 thousand US dollars by December 2024. The highest single quarterly growth appears in the December quarters, indicating potential seasonality effects or end-of-year business spikes. Despite fluctuations, the overall trend is one of revenue growth, suggesting expanding operations or improved market penetration.

Stockholders’ equity shows consistent growth throughout the time frame. Beginning at 674,034 thousand US dollars in March 2020, equity rose steadily with minor fluctuations, climaxing at 2,949,145 thousand US dollars by June 2025. This growth indicates strengthening financial position and retained earnings accumulation, possibly from profitable operations or equity infusions. Some plateauing is observed towards the latest quarters, with a slight decrease noted in the final reported periods, which may require further investigation to understand capital movements or share buybacks.

The equity turnover ratio fluctuates within a narrow range from 0.75 to 0.99 across the periods. Initially registering around 0.83 in late 2020 and early 2021, the ratio demonstrated minor variation, reflecting relatively stable efficiency in utilizing shareholder equity to generate revenue. The ratio peaks close to 0.99 in June 2025, indicating improved efficiency towards the end of the period. These changes illustrate manageable asset productivity relative to equity, with occasional quarter-to-quarter changes potentially influenced by seasonal revenue swings or changes in equity base.

Revenue

Steady upward trend with seasonal peaks, particularly in December quarters; grows from 160,660 to 741,012 thousand US dollars between 2020 and 2024.

Stockholders' equity

Consistent increase from 674,034 to nearly 2.95 million thousand US dollars; possible slight recent decreases indicating changing capital structure or cash returns to shareholders.

Equity turnover

Maintains a range between 0.75 and 0.99; overall indicative of steady or improving efficiency in using equity to drive revenues, with the highest efficiency near the end of the period.