Trade Desk Inc (TTD)

Working capital 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
Total current assets US$ in thousands 5,053,720 4,856,340 5,336,460 4,838,370 4,522,840 4,096,420 4,313,950 4,013,810 3,831,760 3,475,860 3,845,620 3,415,360 3,196,180 2,955,340 3,091,650 2,515,920 2,347,270 2,170,150 2,310,320 1,755,990
Total current liabilities US$ in thousands 2,948,980 2,682,060 2,873,460 2,615,090 2,518,390 2,283,350 2,510,840 2,147,160 2,050,980 1,830,350 2,029,320 1,785,240 1,665,070 1,545,800 1,803,300 1,427,900 1,328,570 1,263,480 1,474,680 1,012,150
Working capital turnover 1.27 1.18 0.99 1.04 1.09 1.13 1.08 0.98 0.97 1.00 0.87 0.91 0.91 0.92 0.93 1.03 1.02 0.99 1.00 0.98

June 30, 2025 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,679,088K ÷ ($5,053,720K – $2,948,980K)
= 1.27

The working capital turnover ratio of Trade Desk Inc over the analyzed period exhibits notable fluctuations, reflecting variations in how effectively the company utilizes its working capital to generate revenue. From September 30, 2020, through September 30, 2021, the ratio remained relatively stable and consistent, ranging narrowly between 0.98 and 1.03, indicative of steady operational efficiency during this timeframe.

Subsequently, a decline is observed, with the ratio decreasing from December 31, 2021, reaching a low of 0.87 by the end of 2022. This downturn suggests a period where the company's ability to generate revenue per unit of working capital diminished slightly, potentially indicating increased working capital levels or decreased efficiency in revenue generation relative to working capital.

Moving into 2023, the ratio generally stabilized around 1.00, indicating a return to prior efficiency levels. Starting from the beginning of 2024, the ratio demonstrates an upward trend, climbing to 1.18 by March 31, 2025, and further reaching 1.27 by June 30, 2025. This upward movement implies an improvement in the company's operational efficiency, whereby it is now generating more revenue per dollar of working capital than in previous periods.

Overall, the analysis indicates that Trade Desk Inc experienced periods of stable efficiency, followed by a phase of decreased utilization, and subsequently a recovery and subsequent improvement. The increase in the working capital turnover ratio towards the latest periods suggests a positive trend in operational performance, reflecting enhanced efficiency in leveraging working capital to generate revenue.