Trade Desk Inc (TTD)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	475,019	452,962	427,167	376,296	305,492	252,445	200,480	156,202	147,329	107,399	113,654	-11,867	39,775	99,980	124,817	256,610	218,946	141,226	144,208	90,426
Total assets	US$ in thousands	5,957,810	5,705,440	6,111,950	5,505,320	5,159,920	4,663,800	4,888,690	4,520,430	4,346,970	3,999,640	4,380,680	3,923,950	3,672,750	3,432,720	3,577,340	2,988,760	2,792,950	2,602,700	2,753,640	2,138,430
Operating ROA		7.97%	7.94%	6.99%	6.84%	5.92%	5.41%	4.10%	3.46%	3.39%	2.69%	2.59%	-0.30%	1.08%	2.91%	3.49%	8.59%	7.84%	5.43%	5.24%	4.23%

June 30, 2025 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $475,019K ÷ $5,957,810K
= 7.97%

The operating return on assets (ROA) for Trade Desk Inc exhibits notable fluctuations over the analyzed period. Starting at 4.23% as of September 30, 2020, it experienced a consistent upward trajectory through early 2021, reaching a peak of 8.59% on September 30, 2021. This suggests an improvement in operational efficiency in utilizing assets to generate operating income during this time.

However, post-September 2021, a marked decline is observed, with the ROA decreasing to a low of -0.30% by September 30, 2022, indicating periods of operational challenges or reduced asset efficiency. Subsequently, the metric demonstrates a gradual recovery, returning to positive territory by December 2022 at 2.59%, and continuing this upward trend throughout 2023 and into 2024.

The data reveals a steady improvement from early 2023 onwards, with ROA rising from approximately 2.69% as of March 31, 2023, to 7.97% projected by June 30, 2025. This persistent growth indicates ongoing enhancements in operational profitability relative to asset base, reflecting effective management and potentially favorable market conditions.

Overall, the operating ROA illustrates significant volatility over the observed period, initially reflecting operational strength and growth, followed by a period of decline, and subsequently a sustained recovery and improvement, culminating in projected profitability levels approaching 8%.