Trade Desk Inc (TTD)
Working capital 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 |
| Total current assets | US$ in thousands | 5,336,460 | 4,313,950 | 3,845,620 | 3,091,650 | 2,310,320 |
| Total current liabilities | US$ in thousands | 2,873,460 | 2,510,840 | 2,029,320 | 1,803,300 | 1,474,680 |
| Working capital turnover | 0.99 | 1.08 | 0.87 | 0.93 | 1.00 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,444,830K ÷ ($5,336,460K – $2,873,460K)
= 0.99
The analysis of Trade Desk Inc's working capital turnover over the period from December 31, 2020, to December 31, 2024, indicates fluctuating efficiency in utilizing its working capital to generate revenue.
At the end of 2020, the company's working capital turnover was 1.00, reflecting a baseline level of effectiveness in converting working capital into sales. In 2021, this ratio declined to 0.93, suggesting a slight decrease in efficiency, which may be attributable to increased working capital levels not proportionally matched by revenue growth during that period.
The downward trend continued into 2022, with the ratio decreasing further to 0.87, indicating a continued reduction in the effectiveness of working capital utilization, possibly due to changes in operational efficiencies or variations in sales dynamics.
In 2023, the ratio experienced an increase to 1.08, signifying an improvement in working capital turnover and suggesting that the company was able to generate more revenue per unit of working capital. This recovery may reflect operational improvements or strategic adjustments that enhanced efficiency.
By the end of 2024, the ratio slightly decreased again to 0.99, approaching previous levels but not fully returning to the 2020 baseline. This slight decrease might indicate a normalization of efficiency following the peak in 2023 or potential challenges in maintaining the elevated performance.
Overall, the trend shows periods of declining efficiency followed by a notable recovery, highlighting fluctuations in how effectively Trade Desk Inc manages its working capital relative to its sales. The recent figures suggest a stabilization around a ratio close to 1, indicating a balanced relationship between working capital and revenue generation, but with ongoing potential for operational improvements to sustain or enhance this efficiency.
Peer comparison
Dec 31, 2024