Trade Desk Inc (TTD)

Payables 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
Cost of revenue (ttm) US$ in thousands 551,742 511,221 472,012 437,440 408,166 379,394 360,631 339,555 316,297 302,100 281,123 268,349 251,625 234,944 221,554 206,354 197,780 189,104 178,812 174,434
Payables US$ in thousands 2,724,090 2,398,950 2,631,210 2,409,770 2,336,590 2,094,860 2,317,320 1,967,650 1,892,910 1,677,150 1,871,420 1,651,450 1,537,450 1,405,670 1,655,680 1,304,970 1,222,220 1,142,260 1,348,480 919,694
Payables turnover 0.20 0.21 0.18 0.18 0.17 0.18 0.16 0.17 0.17 0.18 0.15 0.16 0.16 0.17 0.13 0.16 0.16 0.17 0.13 0.19

June 30, 2025 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $551,742K ÷ $2,724,090K
= 0.20

The payables turnover ratio for Trade Desk Inc demonstrates notable fluctuations over the specified period from September 2020 through June 2025. Initially, the ratio was relatively low at 0.19 in September 2020, indicating that the company was settling its accounts payable approximately once every five to six months. Subsequent quarters revealed a declining trend, reaching a low of approximately 0.13 in December 2020 and again around March 2022, suggesting extended periods for paying suppliers and potentially indicating increased liquidity or optimized payment strategies.

From March 2022 onward, there is a gradual upward trend, with the ratio increasing to approximately 0.18 by March 2023. This indicates a modest acceleration in settling payables, moving toward a payables turnover roughly once every five to six weeks. The ratio stabilizes around 0.16 to 0.18 through 2023 and into the first half of 2024, reflecting a consistent approach to managing trade payables over this period.

By the second half of 2024 and into mid-2025, the ratio further improves to approximately 0.20–0.21, signifying an increased frequency of paying off liabilities—about once every five weeks or less. This upward movement may suggest enhanced operational efficiency or a deliberate strategy to tie up less working capital in accounts payable. Overall, the data indicates that Trade Desk Inc's payables turnover ratio has trended upward over time after initial declines, reflecting a gradual shift towards more frequent settling of supplier obligations.