Trade Desk Inc (TTD)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	2,444,830	1,946,120	1,577,800	1,196,470	836,033
Property, plant and equipment	US$ in thousands	—	—	173,759	369,947	115,863
Fixed asset turnover		—	—	9.08	3.23	7.22

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,444,830K ÷ $—K
= —

The fixed asset turnover ratio for Trade Desk Inc exhibited notable fluctuations over the period from December 31, 2020, to December 31, 2023. At the end of 2020, the ratio was 7.22, indicating that the company generated approximately $7.22 in revenue for every dollar of fixed assets, reflecting a relatively efficient utilization of its fixed assets during that year.

In 2021, the ratio significantly declined to 3.23, suggesting a decrease in the efficiency with which fixed assets contributed to revenue generation. This reduction could potentially be attributed to increased investments in fixed assets that had not yet translated into proportional revenue growth, or possibly operational adjustments impacting asset utilization.

By the end of 2022, the fixed asset turnover improved markedly to 9.08, surpassing the 2020 figure and indicating a substantial enhancement in asset utilization efficiency. This suggests that the company was able to effectively leverage its fixed assets to generate higher revenue relative to its asset base during 2022.

Data for December 31, 2023, is unavailable, as indicated by the placeholder, meaning a comprehensive year-to-year comparison up to that date cannot be established without additional information. The absence of data beyond this point limits the ability to analyze subsequent trends or evaluate the impact of any potentially significant strategic or operational changes.

Overall, the ratio's trajectory reflects a period of increased asset efficiency in 2022 following a dip in 2021, with initial high efficiency in 2020. However, since data beyond 2022 is unavailable, insights into longer-term trends or the company's current fixed asset productivity cannot be drawn.