Trade Desk Inc (TTD)

Operating return on assets (Operating ROA)

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Operating income US$ in thousands 427,167 200,480 113,654 124,817 144,208
Total assets US$ in thousands 6,111,950 4,888,690 4,380,680 3,577,340 2,753,640
Operating ROA 6.99% 4.10% 2.59% 3.49% 5.24%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $427,167K ÷ $6,111,950K
= 6.99%

The operating return on assets (operating ROA) of Trade Desk Inc has exhibited notable fluctuations over the analyzed period from December 31, 2020, to December 31, 2024. At the end of 2020, the operating ROA was 5.24%, reflecting a relatively moderate efficiency in generating operating income from its assets. In 2021, this figure declined to 3.49%, indicating a reduction in operating efficiency or profitability relative to the company's asset base during that year. The trend continued into 2022, with the operating ROA decreasing further to 2.59%, which may suggest persistent operational challenges or increased asset utilization without proportional gains in operating income.

However, the subsequent two years demonstrate a positive turnaround. By the end of 2023, the operating ROA rebounded to 4.10%, signifying an improvement in operational performance or asset management effectiveness. This upward movement culminates in a more substantial increase at the end of 2024, with the operating ROA reaching 6.99%. The year-over-year trend indicates a significant recovery and growth in operating efficiency, surpassing the 2020 level and signaling potential enhancements in operational profitability or better asset utilization.

Overall, the trajectory of Trade Desk Inc’s operating ROA suggests a period of decline followed by a marked recovery. The fluctuation highlights the company's resilience and capacity to improve operational efficiency after a challenging period, with the current level approaching higher profitability thresholds. The observed pattern underscores the importance of monitoring ongoing operational strategies and asset management practices to sustain and enhance this positive momentum.