Trade Desk Inc (TTD)

Return on assets (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
Net income (ttm)	US$ in thousands	417,194	412,094	393,076	308,170	253,364	201,274	178,940	152,804	129,321	77,309	53,385	-9,763	33,752	100,522	137,762	281,625	263,488	240,902	242,317	141,360
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
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%

June 30, 2025 calculation

ROA = Net income (ttm) ÷ Total assets
= $417,194K ÷ $5,957,810K
= 7.00%

The analysis of Trade Desk Inc.'s Return on Assets (ROA) demonstrates a trajectory characterized initially by consistent improvement, followed by a period of significant decline, and ultimately a sustained recovery phase. Starting from a ROA of 6.61% as of September 30, 2020, the metric ascended steadily through the subsequent periods, reaching a peak of approximately 9.43% on June 30, 2021. This upward trend indicates a phase of effective asset utilization and improved profitability relative to total assets during this interval.

However, subsequent data reveal a sharp deterioration, with ROA declining markedly to 3.85% by December 31, 2021, and continuing downward to negative territory at -0.25% on September 30, 2022. This negative figure suggests a period where asset efficiency was compromised, potentially due to increased expenses, lower revenue generation, or strategic investments not yet yielding returns. The negative ROA persisted through most of 2022, but a modest recovery was observed towards the end of 2022, with ROA improving to 1.22%, and further advances to 1.93% by March 2023.

The upward trend continued into 2023, reaching 2.97% on June 30, and subsequently strengthening to 3.38% by September 30, 2023. The subsequent quarters showed a sustained improvement trajectory, with ROA reaching 3.66% at year-end 2023, and then further increasing to 4.32% and 4.91% in the first two quarters of 2024. By September 30, 2024, the ROA was 5.60%, continuing to rise to 6.43% by December 2024. The positive momentum persisted into 2025, with the ROA increasing to 7.22% as of March 31, 2025, and stabilizing around 7.00% in the following quarter.

This pattern indicates a cyclical trend with initial sustainable growth, followed by a notable decline—potentially due to market challenges, competitive pressures, or internal strategic shifts—and then a gradual and sustained recovery. The recent data suggests an ongoing improvement in asset efficiency and profitability, reflecting possibly successful strategic adjustments or operational enhancements. Overall, the ROA movement underscores significant fluctuations in the company’s ability to generate earnings relative to its asset base, with recent figures pointing toward a stable recovery phase.