Trade Desk Inc. (NASDAQ:TTD)

Net fixed asset turnover

The net fixed asset turnover ratio exhibits a general upward trend from the beginning of the period, starting at 7.72 and peaking at 13.65 during the first quarter of 2024. Following this peak, the ratio experiences a gradual decline, decreasing to approximately 8.65 by the third quarter of 2025. This pattern indicates an improvement in asset utilization efficiency until early 2024, followed by a reduction in the ability to generate sales from net fixed assets in subsequent periods.

Net fixed asset turnover (including operating lease, right-of-use asset)

When including operating leases and right-of-use assets, the turnover ratio also trends upward, beginning at 2.53 and climbing steadily to a high of 5.83 in the first quarter of 2024. Similarly to net fixed asset turnover alone, this measure declines afterwards, falling to 4.58 by the third quarter of 2025. This trajectory suggests that incorporating lease assets results in lower turnover ratios overall, yet a similar cyclical pattern of improvement followed by a downturn is observed.

Total asset turnover

The total asset turnover ratio displays moderate fluctuations with an overall modest growth trend. Starting at 0.34, the ratio moves within a narrow range before incrementally increasing to 0.47 by the third quarter of 2025. Although the growth is not dramatic, this trend points to a gradual enhancement in the company’s efficiency at using total assets to generate revenue over the analyzed timeframe.

Equity turnover

The equity turnover ratio generally increases over the period analyzed. It starts at 0.83 and shows some slight variation before reaching 1.07 in the third quarter of 2025. Notably, the ratio dips during parts of 2022 and early 2023, but gains momentum thereafter. This suggests improved effectiveness in using shareholders’ equity to produce sales, with a positive trajectory in later periods.

Revenue Trends

The revenue demonstrates a consistent upward trend over the observed periods, starting from approximately $220 million in the first quarter of 2021 to about $739 million by the third quarter of 2025. Periodic fluctuations are visible, but the general trajectory is positive, with notable increments observed particularly towards the end of each year and into subsequent years. The revenue nearly triples over the reported timespan, indicating strong growth momentum.

Property and Equipment, Net

The net value of property and equipment exhibits overall growth, increasing from around $116 million to over $322 million within the same timeframe. Despite some short-term declines and periods of minor fluctuation, the long-term pattern reflects significant investment or acquisition related to fixed assets. The most pronounced asset increases occur from 2024 onwards, suggesting intensified capital expenditure or asset revaluation during this period.

Net Fixed Asset Turnover Ratio

This ratio measures the efficiency of using fixed assets to generate revenue. Initially, the ratio rises from about 7.72 to a peak around 13.65 by early 2024, indicating improved utilization of fixed assets. Following this peak, there is a decline toward approximately 8.6 in later reports. This pattern suggests that although asset efficiency improved substantially initially, growing asset base or other factors led to a relative decrease in turnover efficiency towards the end of the period examined.

Insights

The simultaneous growth in revenue and property and equipment indicates expansion accompanied by significant investment in fixed assets. The initial improvement in net fixed asset turnover ratio implies effective leveraging of assets to drive revenue growth. However, the later decline in this ratio could reflect the impact of accumulating assets outpacing revenue growth or possible shifts in asset utilization strategies. Overall, the data portrays a company in a growth phase focusing on expanding asset base while managing operational efficiency over time.

The analysis reveals evolving trends in revenue, property and equipment, and net fixed asset turnover ratios over multiple quarters, reflecting the company's operational dynamics and asset utilization efficiency.

Revenue Trends

Revenue exhibits a consistent upward trajectory with notable quarterly fluctuations. Starting at approximately $220 million in the first quarter of 2021, revenue increased substantially, reaching peaks often exceeding $600 million by late 2024 and early 2025. Despite periodic dips, such as seen around early 2023 and early 2025, the overall pattern reflects strong growth momentum, underscoring expanding sales and business scale during the analyzed period.

Property and Equipment, Net

The net value of property and equipment, inclusive of operating lease right-of-use assets, shows a generally increasing trend with some intermittent declines. The asset base started near $354 million in early 2021, experienced minor decreases mid-2021 to early 2022, followed by a significant upward trend from mid-2023 onwards, culminating near $610 million by the third quarter of 2025. This growth signifies ongoing capital investments and asset additions, likely to support expanding operational capacity.

Net Fixed Asset Turnover

This ratio, which measures revenue efficiency relative to fixed assets, demonstrates a strong positive trend initially, rising from 2.53 in early 2021 to a peak of approximately 5.83 by the first quarter of 2024. This improvement indicates increasingly effective utilization of assets to generate revenue. However, after this peak, the ratio experiences a gradual decline, settling near 4.58 by the third quarter of 2025, suggesting either accelerated asset growth outpacing revenue or diminishing marginal returns on recent capital investments.

In summary, the data indicates robust revenue growth complemented by significant capital investment, which initially enhances asset utilization efficiency. Later periods show signs of asset growth moderating efficiency gains, highlighting potential areas for strategic focus on optimizing capital deployment in relation to revenue generation.

The financial data over the examined periods reveals distinct trends in revenue, total assets, and total asset turnover ratio. Revenue demonstrates a general upward trajectory from the first quarter of 2021 through to the third quarter of 2025, with occasional fluctuations. This trend indicates consistent growth in sales or top-line performance over time, reflecting an expansion in business activity or market demand.

Total assets also show a steady increase throughout the periods, rising from just over 2.6 billion US dollars in early 2021 to close to 6 billion US dollars by the third quarter of 2025. This reflects sustained investment in or accumulation of assets, which could be attributed to business growth, acquisitions, or capital expenditures.

The total asset turnover ratio provides insight into the efficiency of asset utilization in generating revenue. This ratio shows an upward trend overall, starting at 0.34 in March 2021 and reaching approximately 0.47 by September 2025. The increase suggests improving operational efficiency, as the company is generating more revenue per unit of asset value over time. Although some minor short-term variations occur, the general trend is positive, indicating enhanced effectiveness in asset use.

Revenue

Displays a consistent increase with seasonal fluctuations, reaching a peak in the fourth quarter of 2024. This indicates successful revenue growth alongside some periodic variance likely related to market or operational cycles.

Total Assets

Growth is steady and substantial across the analyzed quarters. The asset base more than doubles from early 2021 to late 2025, signaling ongoing investment and asset accumulation supporting business expansion.

Total Asset Turnover

The ratio shows progressive improvement, suggesting that the company is becoming more efficient at using its assets to generate revenue. This efficiency gain supports the revenue growth observed, even as the asset base expands significantly.

In summary, the data points to a company experiencing robust revenue growth while simultaneously expanding its asset base and improving asset utilization efficiency. This combination of trends bodes well for sustainable financial performance and indicates effective management of both operational growth and capital investment.

The quarterly financial data shows notable trends in revenue, stockholders' equity, and equity turnover over the analyzed periods. These metrics reflect changes in the company's operational scale, financial strength, and efficiency in utilizing equity to generate revenue.

Revenue

Revenue exhibits a generally upward trajectory with fluctuations across quarters. From March 2021 to December 2021, revenue rose from 219,811 thousand US$ to 395,598 thousand US$, indicating strong growth. A subsequent pullback is observed in early 2022, followed by recovery and continued growth reaching a peak of 741,012 thousand US$ by December 2024. The latest period ending September 2025 records revenue of 739,433 thousand US$, showing stability near the historical high, suggesting a mature revenue base with robust sales performance over time.

Stockholders’ Equity

Stockholders’ equity increases consistently from 1,084,313 thousand US$ in March 2021 to a peak of 2,949,145 thousand US$ in December 2024. This steady growth implies continued profitability, retained earnings accumulation, or capital influx, strengthening the company's equity position. However, a mild decline appears afterward, with equity falling to 2,600,786 thousand US$ by September 2025. Despite this slight decrease, the overall equity level remains significantly higher than at the start of the period, reflecting strong capitalization.

Equity Turnover (Revenue/Equity)

The equity turnover ratio fluctuates within a relatively narrow band, generally ranging from 0.75 to 1.07. Initial values are below 0.9 during 2021 and early 2022, indicating moderate efficiency in generating revenue from equity. From late 2022 onward, the ratio improves, reaching above 0.9 consistently, and peaks at 1.07 by September 2025. This increase suggests enhanced utilization of equity assets to drive revenue, signifying improved operational efficiency or asset productivity over the evaluated timeframe.

In summary, the company demonstrates strong revenue growth and expanding equity base over the observed periods, albeit with some short-term fluctuations. The rising equity turnover ratio in recent quarters highlights improved efficiency in leveraging equity for revenue generation. While net equity dips slightly toward the end, the company maintains a solid financial foundation alongside growing sales volumes.