Trade Desk Inc (TTD)

Receivables 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
Receivables	US$ in thousands	3,254,910	3,051,930	3,330,340	2,989,390	2,905,530	2,619,280	2,870,310	2,434,050	2,346,070	2,086,330	2,347,200	2,026,930	1,902,500	1,760,980	2,020,720	1,624,760	1,527,650	1,368,670	1,584,110	1,139,860
Receivables turnover		0.82	0.84	0.73	0.77	0.75	0.78	0.68	0.75	0.74	0.79	0.67	0.73	0.73	0.73	0.59	0.69	0.68	0.65	0.53	0.64

June 30, 2025 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $2,679,088K ÷ $3,254,910K
= 0.82

The receivables turnover ratio of Trade Desk Inc. has demonstrated a generally increasing trend over the analyzed period from September 2020 through June 2025. Initially, the ratio was relatively low at 0.64 as of September 30, 2020, indicating that the company's receivables were being collected approximately once every 1.56 months. Throughout the subsequent quarters, the ratio fluctuated modestly, reaching a low of 0.53 at the end of 2020, which suggests slightly less efficient receivables collection initially.

From early 2021 onward, the receivables turnover ratio showed a steady upward trajectory, surpassing previous levels periodically. By March 2021, it had increased to 0.65, and this upward momentum continued with minor fluctuations, reaching 0.69 in September 2021 and then improving further to 0.73 by March 2022. The ratio remained stable at that elevated level throughout 2022, maintaining around 0.73, which indicates consistent collection efficiency.

Entering 2023, the ratio displayed further improvement, rising to 0.79 in March 2023 and maintaining a similar level through mid-2023. Continual improvements are observed, with the ratio reaching 0.84 by March 2025, signifying more frequent collection of receivables—approximately once every 1.19 months. Notably, shorter-term fluctuations, such as a dip to 0.68 at the end of 2023, are observed but do not alter the overall positive trend.

Overall, the pattern suggests that Trade Desk Inc. has experienced increasing efficiency in managing its receivables over this period, reflected by a rising receivables turnover ratio. This indicates improved collection practices or possibly changes in revenue recognition timing, contributing to faster receivables turnover and potentially strengthening the company's liquidity position over time.