Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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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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Profitability Ratios (Summary)
Trade Desk Inc., profitability ratios (quarterly data)
Based on: 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 profitability ratios demonstrate a generally positive trend over the observed period, with notable improvements in operating and net profit margins, as well as returns on equity and assets. While the gross profit margin experienced a slight decline towards the end of the period, the other ratios consistently increased, indicating improved operational efficiency and profitability.
- Gross Profit Margin
- The gross profit margin exhibited relative stability in the initial periods, fluctuating around 82%. However, a gradual downward trend is observed from September 30, 2022, culminating in a value of 78.63% by December 31, 2025. This suggests potential pressures on cost of goods sold or pricing strategies over time.
- Operating Profit Margin
- The operating profit margin showed significant volatility early in the period, including a negative value in September 2022. From March 31, 2023, a consistent and substantial upward trend is evident, increasing from 6.53% to 20.35% by December 31, 2025. This indicates improved control over operating expenses and increased operational leverage.
- Net Profit Margin
- Similar to the operating profit margin, the net profit margin experienced initial fluctuations, including a negative value in September 2022. A clear upward trajectory began in March 2023, rising from 4.70% to 15.31% by December 31, 2025. This improvement suggests effective management of all expenses, including interest and taxes.
- Return on Equity (ROE)
- The return on equity mirrored the trends observed in the profit margins. After initial volatility, including a negative value in September 2022, ROE demonstrated a consistent increase, moving from 3.98% to 17.84% by December 31, 2025. This indicates a growing ability to generate profits from shareholder investments.
- Return on Assets (ROA)
- The return on assets also followed a similar pattern, with a negative value in September 2022. A steady upward trend is apparent from March 2023, increasing from 1.93% to 7.20% by December 31, 2025. This suggests improved efficiency in utilizing assets to generate earnings.
Overall, the observed trends suggest a strengthening financial performance, characterized by increasing profitability and efficiency. The consistent improvement in operating and net profit margins, alongside rising ROE and ROA, indicates a positive trajectory for the company. The decline in gross profit margin warrants further investigation, but does not appear to offset the positive trends in other key profitability metrics.
Return on Sales
Return on Investment
Gross Profit Margin
Trade Desk Inc., gross profit margin calculation (quarterly data)
| 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-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 Q4 2025 Calculation
Gross profit margin = 100
× (Gross profitQ4 2025
+ Gross profitQ3 2025
+ Gross profitQ2 2025
+ Gross profitQ1 2025)
÷ (RevenueQ4 2025
+ RevenueQ3 2025
+ RevenueQ2 2025
+ RevenueQ1 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The gross profit margin exhibited a generally stable pattern over the observed period, with a slight downward trend towards the end of the timeframe. Initially, the margin demonstrated strong consistency, fluctuating within a narrow range before exhibiting a gradual decline.
- Initial Stability (Mar 31, 2022 – Dec 31, 2022)
- From March 31, 2022, through December 31, 2022, the gross profit margin remained remarkably consistent, ranging between 81.82% and 82.18%. This indicates a stable relationship between revenue and the cost of goods sold during this period. There were minor fluctuations, but these remained within a limited bandwidth, suggesting a predictable cost structure.
- Gradual Decline (Mar 31, 2023 – Dec 31, 2025)
- Beginning March 31, 2023, a gradual downward trend in the gross profit margin became apparent. The margin decreased from 81.64% to 78.63% by December 31, 2025. While the declines were incremental in each period, the cumulative effect represents a noticeable shift. The rate of decline appeared to accelerate slightly in the latter half of the period, particularly between September 30, 2024, and December 31, 2025.
- Magnitude of Change
- The overall decrease in gross profit margin from the beginning of the observed period to the end was approximately 3.19 percentage points (from 81.82% to 78.63%). This suggests a potential increase in the cost of goods sold relative to revenue, or a shift in the revenue mix towards products or services with lower margins.
- Recent Performance
- The most recent quarterly values indicate a continuation of the downward trend. The gross profit margin for December 31, 2025, was 78.63%, representing the lowest value observed throughout the entire period. This warrants further investigation to determine the underlying causes and potential implications for future profitability.
The observed trend suggests that while the company has maintained a strong gross profit margin overall, there is a developing pattern of margin compression that should be monitored closely. Further analysis is recommended to identify the specific factors contributing to this decline, such as changes in input costs, pricing pressures, or product mix.
Operating Profit Margin
Trade Desk Inc., operating profit margin calculation (quarterly data)
| 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-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 Q4 2025 Calculation
Operating profit margin = 100
× (Income (loss) from operationsQ4 2025
+ Income (loss) from operationsQ3 2025
+ Income (loss) from operationsQ2 2025
+ Income (loss) from operationsQ1 2025)
÷ (RevenueQ4 2025
+ RevenueQ3 2025
+ RevenueQ2 2025
+ RevenueQ1 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The operating profit margin demonstrates a significant and generally positive trend over the observed period. Initially, the metric fluctuated considerably, experiencing a loss in the first quarter before showing improvement throughout 2022. This positive momentum continued into 2023 and 2024, culminating in substantial gains by the end of 2025.
- Initial Volatility (Mar 31, 2022 - Dec 31, 2022)
- The operating profit margin began at 7.74% in March 2022, decreased to 2.86% in June 2022, and then registered a negative value of -0.80% in September 2022. A substantial recovery was then observed, reaching 7.20% by December 2022. This period indicates initial operational challenges followed by a strong rebound.
- Consistent Growth (Mar 31, 2023 - Dec 31, 2024)
- From March 2023 through December 2024, the operating profit margin exhibited consistent growth. Starting at 6.53%, it increased to 14.05% in March 2024 and further to 17.47% by December 2024. This suggests successful implementation of strategies to improve operational efficiency and profitability.
- Accelerated Expansion (Mar 31, 2025 - Dec 31, 2025)
- The rate of increase in the operating profit margin accelerated in 2025. The metric rose from 17.63% in March 2025 to 18.91% in September 2025, and concluded the period at 20.35% in December 2025. This indicates a strengthening of the company’s competitive position and enhanced profitability.
Overall, the operating profit margin has shown a clear upward trajectory, particularly in the latter half of the analyzed timeframe. The progression from initial volatility to consistent growth and, ultimately, accelerated expansion suggests improving operational performance and effective cost management.
Net Profit Margin
Trade Desk Inc., net profit margin calculation (quarterly data)
| 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-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 Q4 2025 Calculation
Net profit margin = 100
× (Net income (loss)Q4 2025
+ Net income (loss)Q3 2025
+ Net income (loss)Q2 2025
+ Net income (loss)Q1 2025)
÷ (RevenueQ4 2025
+ RevenueQ3 2025
+ RevenueQ2 2025
+ RevenueQ1 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The net profit margin exhibited significant fluctuations over the observed period, ultimately demonstrating a strong upward trend. Initial quarters showed volatility, followed by consistent improvement and stabilization in later periods.
- Initial Volatility (Mar 31, 2022 – Dec 31, 2022)
- The net profit margin began at 7.78% in March 2022, decreased to 2.43% in June 2022, and then experienced a negative value of -0.66% in September 2022. A substantial recovery was observed in December 2022, reaching 3.38%. This period indicates initial challenges in maintaining profitability, potentially due to increased costs or decreased revenue growth.
- Consistent Growth (Mar 31, 2023 – Dec 31, 2023)
- From March 2023 through December 2023, the net profit margin demonstrated consistent growth, increasing from 4.70% to 9.19%. This suggests successful implementation of cost control measures or increased pricing power, leading to improved profitability as revenue increased.
- Stabilization at Higher Levels (Mar 31, 2024 – Dec 31, 2025)
- The net profit margin continued to rise, peaking at 16.08% in December 2024. Subsequent quarters showed a slight fluctuation, with values of 16.04%, 15.57%, 15.72%, and concluding at 15.31% in December 2025. This indicates a stabilization of profitability at a significantly higher level than observed in the earlier periods. The margin remained consistently above 15% throughout this phase, suggesting sustained operational efficiency and strong financial performance.
- Overall Trend
- The overall trend reveals a substantial improvement in net profit margin over the analyzed timeframe. Starting with initial instability, the margin progressively increased, culminating in a period of sustained high profitability. This positive trajectory suggests effective management strategies and a favorable business environment.
Return on Equity (ROE)
Trade Desk Inc., ROE calculation (quarterly data)
| 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-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 Q4 2025 Calculation
ROE = 100
× (Net income (loss)Q4 2025
+ Net income (loss)Q3 2025
+ Net income (loss)Q2 2025
+ Net income (loss)Q1 2025)
÷ Stockholders’ equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The Return on Equity (ROE) exhibited a notable upward trend over the observed period, beginning in March 2022 and continuing through December 2025. Initial values were relatively low, with fluctuations between 1.90% and 6.10% in the first four quarters. A consistent increase in ROE became apparent starting in March 2023, accelerating through the subsequent quarters.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The ROE began at 6.10% in March 2022, decreased to 1.90% in June 2022, experienced a negative value of -0.51% in September 2022, and recovered to 2.52% by December 2022. This period demonstrates volatility and a generally low return on equity.
- Growth Phase (Mar 31, 2023 – Dec 31, 2023)
- From March 2023 to December 2023, the ROE increased steadily from 3.98% to 8.27%. This indicates improving profitability relative to shareholder equity. The increase suggests a more efficient utilization of equity to generate earnings.
- Accelerated Growth (Mar 31, 2024 – Dec 31, 2025)
- The rate of increase in ROE accelerated further from March 2024 to December 2025. The ROE rose from 9.29% to 17.84%, demonstrating a substantial improvement in profitability. The final value of 17.84% represents the highest ROE observed within the analyzed timeframe.
The consistent growth in ROE, particularly the acceleration in later periods, suggests increasing efficiency in generating profits from shareholder investments. This positive trend could be attributed to improvements in net income, effective equity management, or a combination of both. The substantial increase from 2024 to 2025 warrants further investigation to identify the key drivers of this performance.
Return on Assets (ROA)
Trade Desk Inc., ROA calculation (quarterly data)
| 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-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 Q4 2025 Calculation
ROA = 100
× (Net income (loss)Q4 2025
+ Net income (loss)Q3 2025
+ Net income (loss)Q2 2025
+ Net income (loss)Q1 2025)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The Return on Assets (ROA) exhibits a clear upward trend over the observed period, beginning in March 2022 and continuing through December 2025. Initially, the ROA fluctuated significantly, experiencing negative values and modest positive returns before demonstrating consistent growth.
- Initial Period (Mar 31, 2022 – Dec 31, 2022)
- The ROA began at 2.93% in March 2022, decreased to 0.92% by June 2022, and then registered a negative value of -0.25% in September 2022. A substantial increase was then observed, reaching 1.22% by the end of 2022. This initial period suggests volatility in the company’s ability to generate earnings from its assets.
- Growth Phase (Mar 31, 2023 – Dec 31, 2024)
- From March 2023 through December 2024, the ROA demonstrated consistent and accelerating growth. It increased from 1.93% to 6.43% over this timeframe. This indicates improving efficiency in utilizing assets to generate profit. The rate of increase accelerated in the latter half of this period.
- Recent Performance (Mar 31, 2025 – Dec 31, 2025)
- The ROA continued to remain strong, reaching 7.22% in March 2025, 7.00% in June 2025, 7.38% in September 2025, and concluding the period at 7.20% in December 2025. While the growth rate slowed slightly compared to the previous year, the ROA remained at a high level, suggesting sustained profitability relative to the asset base.
- Overall Trend
- The overall trend is strongly positive. The ROA has increased from a low of -0.25% to 7.20% over the analyzed period. This suggests improved operational efficiency, effective asset management, and/or increased profitability. The company appears to be generating increasingly higher returns from its asset base.
The consistent upward trajectory of the ROA throughout the period suggests a strengthening financial position and improved performance in utilizing assets to generate income.