Trade Desk Inc (TTD)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 79.41% | 80.11% | 80.69% | 81.06% | 81.23% | 81.53% | 81.47% | 81.46% | 81.74% | 81.64% | 82.18% | 81.90% | 81.88% | 81.82% | 81.48% | 81.59% | 80.91% | 78.88% | 78.61% | 76.17% |
| Operating profit margin | 17.73% | 17.63% | 17.47% | 16.29% | 14.05% | 12.29% | 10.30% | 8.53% | 8.50% | 6.53% | 7.20% | -0.80% | 2.86% | 7.74% | 10.43% | 22.90% | 21.14% | 15.78% | 17.25% | 12.35% |
| Pretax margin | 20.82% | 20.90% | 20.75% | 19.33% | 17.30% | 15.75% | 13.77% | 11.98% | 11.14% | 8.21% | 8.07% | -0.76% | 2.67% | 7.48% | 10.20% | 22.80% | 21.16% | 15.82% | 17.21% | 12.38% |
| Net profit margin | 15.57% | 16.04% | 16.08% | 13.34% | 11.65% | 9.80% | 9.19% | 8.35% | 7.46% | 4.70% | 3.38% | -0.66% | 2.43% | 7.78% | 11.51% | 25.13% | 25.44% | 26.91% | 28.98% | 19.31% |
The profitability ratios for Trade Desk Inc. over the period analyzed demonstrate several notable trends and insights.
Gross Profit Margin: The gross profit margin indicates a consistently high level of profitability at the gross level, reflecting the company's efficiency in managing cost of goods sold relative to revenue. The margin has shown a steady upward trajectory from approximately 76.17% in September 2020 to around 81.74% as of June 2023, with a slight decline to 81.47% by the end of 2023 and further slight fluctuations into 2024 and 2025. This stability and slight upward trend suggest effective management of direct costs and possibly favorable revenue mix or pricing power.
Operating Profit Margin: The operating profit margin exhibits more volatility compared to gross margin, with periods of growth and decline. Initially, it increased from 12.35% in September 2020 to a peak of 22.90% in September 2021. However, subsequent quarters reveal a sharp decline into negative territory (−0.80%) by September 2022, indicating operational challenges or elevated operating costs during that period. From late 2022 onward, the margin demonstrates a recovery trend, rising back into positive territory and reaching approximately 17.73% by June 2025. The pattern suggests that while the company faced operational headwinds, it has been progressively improving its operating efficiency.
Pretax Margin: Reflecting the profitability before taxes, this ratio follows a similar trajectory to the operating margin. It rose from approximately 12.38% in September 2020 to over 22.80% in September 2021, then declined sharply to negative levels in late 2022, and has since been incrementally recovering. By June 2025, the pretax margin approaches around 20.82%, indicating enhanced pre-tax profitability, consistent with operational improvements.
Net Profit Margin: The net profit margin, which accounts for all expenses including taxes, exhibits significant fluctuation over the analyzed period. It increased substantially from about 19.31% in September 2020 to a high of nearly 28.98% by December 2020, then experienced declines, notably dropping below zero in September 2022. Post-2022, the net margin has shown a steady upward trend, reaching approximately 16.08% by December 2024, and maintaining relatively stable levels through the first half of 2025. This progression suggests that the company successfully navigated previous operational setbacks and is realizing improved bottom-line profitability.
Overall Assessment: The company's profitability ratios demonstrate a pattern of strong gross margins maintained over time, indicating effective cost control at the raw cost level. The volatility in operating, pretax, and net margins during 2021-2022 reflects operational challenges or changes, possibly including increased expenses, investments, or external factors impacting profitability. The subsequent recovery into the latter part of 2022 and into 2023-2025 indicates the company's resilience and capacity to improve operational efficiency and profitability. In particular, the consistent upward trend in net profit margin from late 2022 onward signifies an overall positive outlook on profitability, assuming current trends continue.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 7.00% | 7.22% | 6.43% | 5.60% | 4.91% | 4.32% | 3.66% | 3.38% | 2.97% | 1.93% | 1.22% | -0.25% | 0.92% | 2.93% | 3.85% | 9.42% | 9.43% | 9.26% | 8.80% | 6.61% |
| Return on total capital | 16.85% | 15.91% | 13.78% | 13.54% | 11.33% | 9.56% | 7.17% | 5.15% | 5.35% | 3.10% | 2.64% | -4.18% | -1.32% | 2.34% | 3.57% | 15.85% | 15.65% | 12.14% | 15.20% | 10.20% |
| Return on equity (ROE) | 15.48% | 15.17% | 13.33% | 11.74% | 10.53% | 9.29% | 8.27% | 7.09% | 6.24% | 3.98% | 2.52% | -0.51% | 1.90% | 6.10% | 9.02% | 21.62% | 21.91% | 22.22% | 23.92% | 16.98% |
The profitability ratios of Trade Desk Inc. exhibit a dynamic pattern over the analyzed period, reflecting fluctuations in operational efficiency, asset utilization, and shareholder returns.
Starting with the Operating Return on Assets (Operating ROA), the data indicates an upward trend from 4.23% as of September 30, 2020, to a peak of 8.59% on September 30, 2021. After this peak, the ratio declined significantly, reaching negative territory at -0.30% on September 30, 2022, suggesting operational challenges or a decline in core business performance during that period. Subsequently, the Operating ROA demonstrates a recovery trend, gradually improving to 7.97% as of June 30, 2025. This recovery points towards an operational stabilization and effective asset utilization in recent periods.
The Return on Assets (ROA), which accounts for total assets including both operating and non-operating items, follows a similar trajectory but with generally higher values. It peaked at 9.43% on June 30, 2021, and experienced a decline, turning negative at -0.25% on September 30, 2022. Like Operating ROA, it showed resilience with improvements beginning in late 2022 and reaching 7.00% by June 30, 2025, indicating an overall enhancement in asset efficiency and profitability.
Regarding the Return on Total Capital, which encompasses both equity and debt, the ratios reflect a more volatile trend with periods of decline and recovery. It reached as high as 15.85% on September 30, 2021, but dropped to negative territory (-4.18%) on September 30, 2022, denoting possible increased leverage costs or capital efficiency issues at that time. The ratio has demonstrated a steady bounce back, reaching 16.85% by June 30, 2025, implying improved overall capital profitability.
The Return on Equity (ROE) reveals a similar pattern: high initial figures (e.g., 23.92% on December 31, 2020), followed by declines, including negative values at -0.51% on September 30, 2022. Recent data shows a consistent upward trend in ROE, climbing to 15.48% as of June 30, 2025, indicating enhanced equity holders’ returns through improved profitability and operational efficiency.
Overall, the analysis shows that Trade Desk’s profitability ratios experienced notable volatility through the period, with periods of decline correlating with operational or market headwinds, particularly around late 2021 and 2022. Nonetheless, recent data reflects a meaningful recovery and improvement in profitability metrics, underlying a positive trend in operational efficiency, asset utilization, and shareholder value creation.