Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Common-Size Income Statement
- Analysis of Solvency Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Equity (ROE) since 2016
- Return on Assets (ROA) since 2016
- Total Asset Turnover since 2016
- Price to Operating Profit (P/OP) since 2016
- Price to Book Value (P/BV) since 2016
- Aggregate Accruals
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Profitability Ratios (Summary)
Trade Desk Inc., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
The financial performance over the observed period is characterized by an initial phase of volatility followed by a sustained expansion in operational efficiency and profitability. While the company experienced a notable dip in margins during the third quarter of 2022, subsequent quarters demonstrate a strong recovery and a consistent upward trajectory in bottom-line performance.
- Gross Profit Margin
- A gradual contraction is observed in the gross profit margin over the long term. After maintaining stability above 81% from March 2022 through December 2023, the margin entered a period of steady decline, falling to 77.83% by March 2026. This suggests a gradual increase in the cost of goods sold relative to revenue.
- Operating Profit Margin
- The operating profit margin exhibits the most significant growth trend. Following a trough of -0.80% in September 2022, the margin expanded consistently, reaching 20.26% by March 2026. This divergence from the gross margin trend indicates successful operational leverage and effective management of operating expenses.
- Net Profit Margin
- Net profitability mirrored the operational trend, recovering from a low of -0.66% in September 2022 to a peak of 16.08% in December 2023. Although some slight fluctuations occurred between 2024 and 2026, the net profit margin remained substantially higher than in the 2022 period, closing at 14.57% in March 2026.
- Return on Equity (ROE) and Return on Assets (ROA)
- Both efficiency ratios show a strong positive correlation with profit margins. ROE grew from a low of -0.51% in September 2022 to 17.63% by March 2026, reflecting a significant increase in the return generated on shareholder investments. Similarly, ROA improved from -0.25% to 7.54% over the same period, indicating more efficient utilization of the company's total asset base to generate earnings.
Overall, the data reveals a transition from a period of margin compression in 2022 to a phase of robust profitability growth. The increase in operating and net margins, despite the slight erosion of gross margins, underscores an improvement in overall business scalability and cost discipline.
Return on Sales
Return on Investment
Gross Profit Margin
Trade Desk Inc., gross profit margin calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Gross profit | |||||||||||||||||||||||
| Revenue | |||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||
| Gross profit margin1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||||
| Alphabet Inc. | |||||||||||||||||||||||
| Comcast Corp. | |||||||||||||||||||||||
| Meta Platforms Inc. | |||||||||||||||||||||||
| Netflix Inc. | |||||||||||||||||||||||
| Walt Disney Co. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2026 Calculation
Gross profit margin = 100
× (Gross profitQ1 2026
+ Gross profitQ4 2025
+ Gross profitQ3 2025
+ Gross profitQ2 2025)
÷ (RevenueQ1 2026
+ RevenueQ4 2025
+ RevenueQ3 2025
+ RevenueQ2 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The analysis of profitability indicates a divergent trend between absolute financial growth and operational efficiency. While both revenue and gross profit exhibit consistent year-over-year growth and strong seasonal peaks in the fourth quarter of each year, the gross profit margin demonstrates a progressive decline over the analyzed period.
- Revenue and Gross Profit Growth
- Revenue increased from 315.3 million US$ in March 2022 to 688.9 million US$ in March 2026. Correspondingly, gross profit rose from 251.4 million US$ to 506.9 million US$ over the same timeframe. A recurring seasonal pattern is evident, with peak values occurring every December, reflecting heightened activity at the end of the calendar year.
- Gross Profit Margin Trend
- The gross profit margin initially remained stable, peaking at 82.18% in December 2022. However, a gradual erosion began in 2023, with the margin declining to 81.21% by December 2023. This downward trajectory accelerated throughout 2024 and 2025, falling below the 80% threshold in March 2025 and reaching a period low of 77.83% by March 2026.
- Operational Efficiency Analysis
- The steady contraction of the gross profit margin suggests that the cost of revenue is increasing at a faster rate than total revenue growth. Despite the substantial increase in absolute gross profit, the ability to convert revenue into gross profit diminished by approximately 4.35 percentage points from the peak in December 2022 to the first quarter of 2026.
Operating Profit Margin
Trade Desk Inc., operating profit margin calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Income (loss) from operations | |||||||||||||||||||||||
| Revenue | |||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||
| Operating profit margin1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||||
| Alphabet Inc. | |||||||||||||||||||||||
| Comcast Corp. | |||||||||||||||||||||||
| Meta Platforms Inc. | |||||||||||||||||||||||
| Netflix Inc. | |||||||||||||||||||||||
| Walt Disney Co. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2026 Calculation
Operating profit margin = 100
× (Income (loss) from operationsQ1 2026
+ Income (loss) from operationsQ4 2025
+ Income (loss) from operationsQ3 2025
+ Income (loss) from operationsQ2 2025)
÷ (RevenueQ1 2026
+ RevenueQ4 2025
+ RevenueQ3 2025
+ RevenueQ2 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The operational performance exhibits a sustained trajectory of growth in both top-line revenue and operating efficiency over the period from March 2022 through March 2026. While revenue shows consistent year-over-year increases, the capacity to convert this revenue into operating profit has expanded significantly over the analyzed timeframe.
- Operating Margin Trend
- A significant long-term upward trend in the operating profit margin is evident. Following a period of volatility between March 2022 and September 2022, during which the margin reached a low of -0.80%, a consistent expansion phase commenced. The margin progressed from 7.20% in December 2022 to a peak of 20.35% by December 2025, indicating a substantial increase in operational efficiency.
- Revenue and Operating Income Correlation
- Revenue growth is characterized by a steady climb from $315.3 million in March 2022 to a peak of $846.8 million in December 2025. Parallel to this, income from operations shifted from initial losses in early 2022 to substantial positive figures, reaching a high of $256.9 million in December 2025. This suggests that revenue growth has consistently outpaced the increase in operating expenses.
- Seasonal Performance Patterns
- A recurring seasonal pattern is observable across the data. Revenue and operating income typically experience a contraction in the first quarter of each year, followed by sequential growth that culminates in peak performance during the fourth quarter. Despite these cyclical fluctuations, the baseline operating margin has shifted higher in each subsequent annual cycle.
- Profitability Acceleration
- The acceleration of the operating margin is most pronounced from March 2024 onward. During this interval, the margin rose from 12.29% to 20.26% by March 2026. This trend indicates a transition toward a more scalable operational model where incremental revenue contributes more heavily to operating profit.
Net Profit Margin
Trade Desk Inc., net profit margin calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Net income (loss) | |||||||||||||||||||||||
| Revenue | |||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||
| Net profit margin1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||||
| Alphabet Inc. | |||||||||||||||||||||||
| Comcast Corp. | |||||||||||||||||||||||
| Meta Platforms Inc. | |||||||||||||||||||||||
| Netflix Inc. | |||||||||||||||||||||||
| Walt Disney Co. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2026 Calculation
Net profit margin = 100
× (Net income (loss)Q1 2026
+ Net income (loss)Q4 2025
+ Net income (loss)Q3 2025
+ Net income (loss)Q2 2025)
÷ (RevenueQ1 2026
+ RevenueQ4 2025
+ RevenueQ3 2025
+ RevenueQ2 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The financial performance exhibits a transition from initial volatility and negative earnings to a period of sustained growth and margin expansion, followed by a phase of stabilization. A clear seasonal pattern is evident, with revenue and net income consistently peaking in the fourth quarter of each fiscal year.
- Revenue and Net Income Growth
- Revenue demonstrates a consistent long-term upward trajectory, increasing from 315.3 million USD in March 2022 to 688.9 million USD by March 2026. Net income followed a similar growth path, recovering from losses of 19.1 million USD in June 2022 to reach a peak of 186.9 million USD in December 2025. The correlation between revenue spikes and net income peaks suggests a scalable operational model where year-end demand significantly drives profitability.
- Net Profit Margin Trajectory
- The net profit margin experienced three distinct phases. An initial decline occurred between March 2022 and September 2022, where the margin dropped from 7.78% to a low of -0.66%. This was followed by a period of aggressive expansion from December 2022 through December 2024, during which the margin climbed steadily from 3.38% to a peak of 16.08%. In the final period from March 2025 to March 2026, the margin entered a stabilization phase, remaining within a narrow band between 14.57% and 16.04%.
- Seasonality and Profitability Patterns
- Quarterly fluctuations indicate a recurring cyclical trend. Every March, there is a noticeable contraction in both revenue and net income compared to the preceding December. Despite these cyclical dips in absolute earnings, the net profit margin remained resilient during the 2025 and 2026 cycles, maintaining levels above 14%, which indicates improved efficiency in cost management relative to revenue fluctuations.
Return on Equity (ROE)
Trade Desk Inc., ROE calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Net income (loss) | |||||||||||||||||||||||
| Stockholders’ equity | |||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROE1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||||
| Alphabet Inc. | |||||||||||||||||||||||
| Comcast Corp. | |||||||||||||||||||||||
| Meta Platforms Inc. | |||||||||||||||||||||||
| Netflix Inc. | |||||||||||||||||||||||
| Walt Disney Co. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2026 Calculation
ROE = 100
× (Net income (loss)Q1 2026
+ Net income (loss)Q4 2025
+ Net income (loss)Q3 2025
+ Net income (loss)Q2 2025)
÷ Stockholders’ equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
A significant upward trajectory in profitability and capital efficiency is observed from the first quarter of 2022 through the first quarter of 2026. The transition from initial net losses to consistent and growing net income has resulted in a steady expansion of the Return on Equity (ROE).
- Net Income Trends
- Profitability shifted from a deficit in the first half of 2022 to positive territory starting in the third quarter of 2022. A recurring seasonal pattern is evident, with net income consistently peaking in the fourth quarter of each fiscal year, reaching its highest observed value of 186.95 million US$ in December 2025. This growth demonstrates a strengthening capacity to generate earnings over the analyzed period.
- Stockholders' Equity Evolution
- Equity experienced a period of sustained growth from March 2022, rising from 1.65 billion US$ to a peak of 2.95 billion US$ by December 2024. Following this peak, a gradual decline is noted, with equity contracting to 2.45 billion US$ by March 2026. This suggests a shift in capital structure or a change in the retention of earnings during the final year of the period.
- Return on Equity (ROE) Analysis
- The ROE exhibited initial volatility between March 2022 and December 2022, including a dip to -0.51% in September 2022. However, from March 2023 onward, a consistent and accelerating upward trend is observed. The ROE climbed steadily from 3.98% in March 2023 to a peak of 17.84% in December 2025, ending at 17.63% in March 2026. This progression indicates a substantial improvement in the efficiency with which shareholder capital is utilized to generate profits.
The synchronization of rising net income and a subsequent contraction in stockholders' equity during 2025 and 2026 has served to further amplify the ROE, reflecting enhanced operational leverage and improved bottom-line performance.
Return on Assets (ROA)
Trade Desk Inc., ROA calculation (quarterly data)
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Net income (loss) | |||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||
| ROA1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||||
| Alphabet Inc. | |||||||||||||||||||||||
| Comcast Corp. | |||||||||||||||||||||||
| Meta Platforms Inc. | |||||||||||||||||||||||
| Netflix Inc. | |||||||||||||||||||||||
| Walt Disney Co. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2026 Calculation
ROA = 100
× (Net income (loss)Q1 2026
+ Net income (loss)Q4 2025
+ Net income (loss)Q3 2025
+ Net income (loss)Q2 2025)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The financial data indicates a sustained improvement in asset utilization and profitability from early 2022 through early 2026. Following a period of volatility and temporary negative returns in 2022, the Return on Assets (ROA) transitioned into a consistent growth phase, reflecting enhanced operational efficiency and stronger net earnings relative to the asset base.
- Net Income and Profitability Trajectory
- A transition from net losses in the first half of 2022 to consistent profitability is observed. Net income moved from a low of -19.07 million USD in June 2022 to a high of 186.95 million USD by December 2025. This recovery in earnings is the primary driver behind the upward movement of the ROA, which climbed from -0.25% in September 2022 to 7.54% by March 31, 2026.
- Asset Expansion and Resource Efficiency
- Total assets grew steadily from 3.43 billion USD in March 2022 to a peak of 6.11 billion USD in September 2024. While the asset base expanded significantly, the growth in net income occurred at a disproportionately higher rate. This imbalance indicates an increase in the efficiency with which assets are being deployed to generate profit, as evidenced by the ROA steadily rising from 1.22% at the end of 2022 to over 7% by 2025.
- Seasonal Performance Patterns
- A recurring cyclical trend is observed in the quarterly net income figures, with significant peaks occurring every December. For example, net income rose to 182.23 million USD in December 2024 and 186.95 million USD in December 2025. These year-end surges contribute to the overall positive trend in ROA, despite typical quarterly fluctuations in the first half of each year.