Trade Desk Inc (TTD)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
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
Current ratio		1.86	1.72	1.90	1.71	1.57

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $5,336,460K ÷ $2,873,460K
= 1.86

The current ratio of Trade Desk Inc. has demonstrated fluctuations over the period from December 31, 2020, through December 31, 2024. At the end of 2020, the ratio stood at 1.57, indicating that the company's current assets were approximately 1.57 times its current liabilities. This ratio increased in 2021 to 1.71, reflecting an improvement in liquidity and a stronger ability to meet short-term obligations. The upward trend continued in 2022, reaching 1.90, which suggests a further enhancement in liquidity position during that year.

However, in 2023, the current ratio declined slightly to 1.72, indicating a marginal decrease in liquidity but still maintaining a comfortable buffer above the generally acknowledged threshold of 1.0, which denotes adequate cover of current liabilities. The ratio then increased again in 2024 to 1.86, demonstrating a recovery and strengthening of the company's short-term liquidity position.

Overall, the trend in Trade Desk Inc.'s current ratio points to a generally stable liquidity profile, with periods of growth suggesting improved short-term financial health, albeit with some variability. The ratios consistently remain above 1.5, indicating that the company has maintained sufficient current assets relative to its current liabilities over the analyzed period.