Trade Desk Inc (TTD)

Fixed asset turnover

		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	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020
Revenue (ttm)	US$ in thousands	2,679,088	2,569,599	2,444,831	2,309,616	2,174,866	2,054,570	1,946,120	1,831,060	1,732,567	1,645,275	1,577,795	1,482,656	1,388,974	1,291,979	1,196,467	1,120,774	1,035,796	895,184	836,033	732,072
Property, plant and equipment	US$ in thousands	—	—	—	—	—	—	—	—	159,805	170,454	173,759	166,078	364,594	130,640	369,947	379,852	370,483	115,914	115,863	314,034
Fixed asset turnover		—	—	—	—	—	—	—	—	10.84	9.65	9.08	8.93	3.81	9.89	3.23	2.95	2.80	7.72	7.22	2.33

June 30, 2025 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,679,088K ÷ $—K
= —

The fixed asset turnover ratio for Trade Desk Inc. exhibits significant fluctuations over the reported periods, indicating variability in the company's efficiency in utilizing its fixed assets to generate revenue.

In the fiscal year ending September 30, 2020, the ratio stood at 2.33, suggesting a moderate level of asset utilization. This level increased substantially by December 31, 2020, reaching 7.22, and further rose to 7.72 by March 31, 2021, reflecting a period of improved efficiency in deploying fixed assets to support revenue growth.

However, during the subsequent quarter ending June 30, 2021, the ratio declined sharply to 2.80, indicating a reduction in asset efficiency. The ratio saw a slight increase to 2.95 by September 30, 2021, and then grew gradually to 3.23 by December 31, 2021, denoting some recovery or stabilization in asset utilization.

The most notable change occurs between December 31, 2021, and March 31, 2022, when the ratio surged to 9.89, signifying a marked improvement in how effectively the company’s fixed assets were generating revenue. This elevated level persisted into the subsequent periods, with ratios of 3.81 on June 30, 2022, and then rising sharply to 8.93 on September 30, 2022, and slightly increasing to 9.08 at the end of 2022.

Throughout 2023, the fixed asset turnover ratio remained relatively high, with incremental gains such as 9.65 on March 31, 2023, and 10.84 on June 30, 2023. The ratio data is not available beyond this point, preventing further analysis of subsequent periods.

Overall, the trend suggests periods of significant variability in asset utilization efficiency. The sharp peaks around March 2022 and mid-2023 indicate phases where the company maximized its revenue generation relative to its fixed assets, possibly due to strategic investments, operational efficiencies, or shifts in revenue streams. The fluctuations, particularly the decline post-March 2021 and the subsequent rapid increases, highlight changes in asset deployment, operational scale, or revenue recognition practices over time.

This analysis underscores the importance of contextual factors—such as changes in business operations, scaling efforts, or strategic decisions—that likely contributed to these shifts in fixed asset efficiency across the observed periods.