Trade Desk Inc (TTD)

Cash ratio

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
Cash and cash equivalents US$ in thousands 896,387 1,118,540 1,369,460 1,221,480 1,009,360 918,200 895,129 1,071,760 965,831 892,702 1,030,510 994,656 932,683 844,223 754,154 576,916 476,907 471,637 437,353 434,371
Short-term investments US$ in thousands 790,874 621,826 552,026 510,290 497,168 501,360 485,159 450,117 465,113 437,730 416,080 326,745 280,459 260,347 204,625 221,685 228,150 208,446 186,685 122,909
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
Cash ratio 0.57 0.65 0.67 0.66 0.60 0.62 0.55 0.71 0.70 0.73 0.71 0.74 0.73 0.71 0.53 0.56 0.53 0.54 0.42 0.55

June 30, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($896,387K + $790,874K) ÷ $2,948,980K
= 0.57

The cash ratio of Trade Desk Inc. over the analyzed period demonstrates a relatively stable liquidity position concerning its most liquid assets—cash and cash equivalents relative to current liabilities. Starting at 0.55 on September 30, 2020, the ratio experienced minor fluctuations but maintained an overall consistent level, declining to a low of 0.42 by December 31, 2020, and subsequently recovering to levels exceeding 0.70 during 2022 and into 2023.

Notably, the ratio peaked at 0.74 on September 30, 2022, indicating that the company had cash and cash equivalents amounting to approximately 74% of its current liabilities at that time—a strong liquidity indicator. This elevated ratio suggests a conservative approach towards liquidity management, with a substantial buffer of liquid assets to meet short-term obligations.

Following this peak, the ratio saw a slight decline, settling around 0.66 to 0.70 through mid-2024, implying a marginal reduction in liquid assets relative to current liabilities but still maintaining a healthy liquidity position. The latest data point on September 30, 2025, shows a ratio of 0.57, indicating a modest decline from the peak, yet the ratio remains above 0.50, signifying that over half of the current liabilities are covered by cash and cash equivalents.

Overall, the trend reflects a consistent and prudent liquidity profile, with the company generally maintaining a cash ratio comfortably above or near the 0.50 level. This stability underscores a conservative liquidity management strategy, providing resilience against short-term financial pressures, although a gradual decrease over time may suggest a shift towards deploying cash into other asset classes or operational activities.