Trade Desk Inc (TTD)

Return on equity (ROE)

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 stockholders’ equity US$ in thousands 2,695,830 2,716,680 2,949,140 2,625,750 2,405,410 2,166,560 2,164,220 2,155,530 2,071,410 1,940,810 2,115,340 1,914,290 1,779,830 1,649,100 1,527,310 1,302,810 1,202,350 1,084,310 1,013,140 832,627
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%

June 30, 2025 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $417,194K ÷ $2,695,830K
= 15.48%

The Return on Equity (ROE) of Trade Desk Inc exhibits a notable upward trend over the analyzed period. Starting at 16.98% as of September 30, 2020, the ROE increased significantly through the subsequent quarters, reaching a peak of 23.92% by December 31, 2020. This initial growth suggests strong profitability relative to shareholders' equity during that period.

Following this peak, the ROE experienced a moderate decline, stabilizing around 22.22% in March 2021 and maintaining a similar level up to September 30, 2021 (21.62%). However, a substantial decline was observed starting in late 2021, with the ROE decreasing sharply to 9.02% by December 31, 2021, and continuing downward through mid-2022 — reaching as low as 1.90% in June 2022 and turning negative at -0.51% as of September 30, 2022. This negative ROE indicates periods where the company’s net income was insufficient to generate positive returns relative to equity, reflecting potential challenges in profitability or increased expenses during that time.

From late 2022 onwards, the ROE shows a steady recovery trajectory. It improved to 2.52% at year-end 2022 and further increased through 2023 — reaching 3.98% in March, 6.24% in June, and 7.09% in September 2023. The upward momentum continued into 2024, with ROE progressing to 8.27% by December 2023 and further rising to 9.29% in March, 10.53% in June, and reaching 11.74% by September 2024. The positive trend persisted into early 2025, with ROE recorded at 13.33% at the end of 2024, and projected to increase further to 15.17% by March 2025 and 15.48% by June 2025.

Overall, the pattern indicates periods of high profitability in late 2020, followed by a significant downturn characterized by negative and low positive returns in late 2022, and a subsequent recovery phase that suggests improving operational efficiency and profitability margins. The trajectory of ROE reflects the company's evolving financial performance, resilience, and potential turnaround efforts over recent periods.