Trade Desk Inc (TTD)

Cash conversion cycle

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
Days of inventory on hand (DOH) days — — — — — — — — — — — — — — — — — — — —
Days of sales outstanding (DSO) days 443.45 433.51 497.20 472.43 487.62 465.32 538.33 485.20 494.25 462.85 542.99 498.99 499.95 497.50 616.45 529.13 538.32 558.06 691.60 568.32
Number of days of payables days 1,802.10 1,712.79 2,034.68 2,010.71 2,089.48 2,015.38 2,345.39 2,115.10 2,184.38 2,026.35 2,429.78 2,246.25 2,230.18 2,183.80 2,727.66 2,308.24 2,255.59 2,204.74 2,752.58 1,924.44
Cash conversion cycle days -1,358.65 -1,279.28 -1,537.47 -1,538.28 -1,601.86 -1,550.06 -1,807.06 -1,629.90 -1,690.13 -1,563.50 -1,886.79 -1,747.26 -1,730.23 -1,686.30 -2,111.21 -1,779.11 -1,717.27 -1,646.68 -2,060.99 -1,356.13

June 30, 2025 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 443.45 – 1,802.10
= -1,358.65

The data indicates that Trade Desk Inc's cash conversion cycle (CCC) has consistently remained in negative territory throughout the observed period, suggesting the company typically receives payments from its customers before settling its own supplier obligations. The magnitude of the negative CCC has fluctuated over time, with values ranging from approximately -2,111 days to about -1,279 days.

From the end of September 2020 through the first quarter of 2023, the CCC generally trended towards less negative figures, reaching a lowest point near -2,111 days at the end of 2021. This indicates a period where the company had the longest duration of receivables outstanding relative to payables, implying extended collection periods or shorter payable durations. Subsequently, starting from early 2023 onwards, the CCC shows a trend of gradually becoming less negative, with notable improvements observed in the first quarter of 2025, where the CCC approximates -1,279 days.

This relatively stable and highly negative cycle suggests efficient receivables collection practices and potentially favorable payment terms with suppliers. A decreasingly negative CCC may reflect operational adjustments, improved cash flow management, or changes in credit terms offered to clients and negotiated with suppliers. Overall, the data highlights a consistently swift cash cycle, favoring liquidity, although the variations over the years demonstrate periods of shifting operational or strategic priorities impacting the cash flow timing.