Trade Desk Inc (TTD)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		0.73	0.68	0.67	0.59	0.53
DSO	days	497.20	538.33	542.99	616.45	691.60

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 0.73
= 497.20

The analysis of Trade Desk Inc.’s Days of Sales Outstanding (DSO) over the specified period reveals a consistent downward trend from December 31, 2020, through December 31, 2024. Specifically, the DSO decreased from approximately 691.60 days at the end of 2020 to 616.45 days at the end of 2021, reflecting an improvement in the company's collection practices or changes in customer payment terms. The decline continued into 2022, with DSO reaching approximately 542.99 days, and further decreased to around 538.33 days by the end of 2023. By December 31, 2024, the DSO stood at approximately 497.20 days.

This consistent reduction in DSO over the four-year span indicates a movement toward shorter credit extension periods or enhanced collection efficiency, which can positively impact cash flow. Nonetheless, the DSO values remain significantly high, suggesting that the company’s receivables are outstanding for an extended period, which may reflect industry-specific characteristics, customer credit policies, or operational factors.

Overall, the trend suggests that Trade Desk Inc. has been taking deliberate measures to shorten the receivables cycle, although the level of DSO remains elevated, warranting ongoing analysis to determine the underlying causes and potential impacts on liquidity and working capital management.