Trade Desk Inc (TTD)

Payables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	472,012	365,598	281,123	221,554	178,812
Payables	US$ in thousands	2,631,210	2,317,320	1,871,420	1,655,680	1,348,480
Payables turnover		0.18	0.16	0.15	0.13	0.13

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $472,012K ÷ $2,631,210K
= 0.18

The payables turnover ratio for Trade Desk Inc demonstrates a gradual upward trend over the period from December 31, 2020, to December 31, 2024. Specifically, the ratio remained stable at 0.13 in both 2020 and 2021, indicating no significant change in the efficiency of paying off trade payables during these years. Subsequently, the ratio increased modestly to 0.15 in 2022, reflecting a slight improvement in the company's ability to settle its payables more frequently relative to its cost of goods sold or operational expenses during that period. This upward movement continued into 2023 with the ratio reaching 0.16, and further rose to 0.18 in 2024, illustrating a consistent trend of increasing payables turnover.

This pattern suggests that Trade Desk Inc has been gradually enhancing its accounts payable management, possibly by streamlining payment processes or negotiating improved terms with suppliers. The overall increase from 0.13 to 0.18 over the four-year span indicates a move towards more efficient management of trade payables, which could potentially improve cash flow and liquidity positioning. However, since the ratios remain relatively low in absolute terms, it may also imply that the company maintains relatively extended payment periods compared to industry peers, or that payables turnover remains a conservative aspect of its working capital strategy.