Trade Desk Inc (TTD)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	454,265	432,208	406,413	355,542	272,615	207,160	155,195	110,917	110,753	60,129	55,869	-80,053	-23,556	38,643	54,533	206,557	188,206	131,594	154,038	84,926
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
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%

June 30, 2025 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $454,265K ÷ ($—K + $2,695,830K)
= 16.85%

The analysis of Trade Desk Inc’s Return on Total Capital (ROTC) over the period from September 2020 to June 2025 reveals significant fluctuations with an overall recovery and upward trend in recent years. Initially, in September 2020, the ROTC stood at 10.20%, indicating a relatively strong position given the context of the pandemic and economic disruptions. The subsequent quarter saw an increase to 15.20%, reflecting improved operational performance and possibly favorable market conditions.

During 2021, the ROTC remained relatively high, with values of 12.14% in March and 15.65% in June, further strengthening to 15.85% in September. However, a sharp decline occurred towards the end of 2021, with the metric dropping to 3.57% in December, signaling a potential deterioration in profitability or increased capital costs. This downward trend continued into 2022, with ROTC decreasing to 2.34% in March, and turning negative at -1.32% in June, followed by -4.18% in September, indicating that the company was experiencing losses relative to its total capital during this period.

In late 2022 and early 2023, the ROTC shows signs of recovery, rising again to 2.64% in December 2022 and 3.10% in March 2023. The positive trajectory became more pronounced through 2023, with the ROTC reaching 5.35% in June and slightly declining to 5.15% in September. The gradual improvement continued into the following periods, with rotations up to 7.17% by December 2023, illustrating a sustained recovery and growing efficiency in leveraging total capital.

Entering 2024, the ROTC demonstrated a steady upward trend, climbing to 9.56% in March and further increasing to 11.33% in June, and then to 13.54% in September. The data projections extend into 2025, showing continued growth with values of 13.78% in December, 15.91% in March, and reaching 16.85% by June. This progression indicates a significant enhancement in the company's ability to generate returns relative to its total capital, reflecting improved operational efficiency, profitability, or both.

Overall, the trend illustrates periods of significant volatility, particularly during 2022 when the ROTC turned negative, followed by a resilient recovery marked by consistent growth in the subsequent years. The recent and projected figures suggest an optimistic outlook regarding the company's ability to utilize its capital effectively to produce profits.