Trade Desk Inc (TTD)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	393,076	178,940	53,385	137,762	242,317
Total assets	US$ in thousands	6,111,950	4,888,690	4,380,680	3,577,340	2,753,640
ROA		6.43%	3.66%	1.22%	3.85%	8.80%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $393,076K ÷ $6,111,950K
= 6.43%

The return on assets (ROA) for Trade Desk Inc. exhibits notable fluctuations over the analyzed period from December 31, 2020, to December 31, 2024. At the close of 2020, the ROA was recorded at 8.80%, indicating a relatively strong ability to generate profit from its assets. However, in the subsequent year, 2021, there was a significant decline to 3.85%, reflecting diminished efficiency in asset utilization or profitability. This downward trend persisted into 2022, where the ROA further decreased to 1.22%, suggesting that the company's efficiency in converting assets into earnings faced considerable pressures during this period.

In 2023, there was a modest recovery with the ROA increasing to 3.66%, indicating some improvement in asset profitability, although the level remained substantially below the 2020 figure. Moving into 2024, the ROA experienced another positive shift, rising to 6.43%. This upward trend suggests a strengthening in the company’s operational efficiency and profitability relative to its asset base.

Overall, the trajectory of Trade Desk Inc.'s ROA from 2020 to 2024 demonstrates periods of significant decline followed by a gradual recovery. The fluctuations may be attributed to various factors such as changes in revenue growth, margin pressures, or shifts in asset management efficiency. The recent increase in 2024 indicates a positive trend and potential stabilization in asset utilization and profitability, although it has yet to return to the higher levels observed at the end of 2020.