Trade Desk Inc (TTD)

Interest coverage

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
Interest expense (ttm) US$ in thousands 0 0 0 36,578 36,578 54,085 68,508 43,364 45,105 28,254 14,907 4,503 3,079 2,617 1,586 1,648 1,566 1,476 2,523 6,150
Interest coverage — — — 9.72 7.45 3.83 2.27 2.56 2.46 2.13 3.75 -17.78 -7.65 14.77 34.38 125.34 120.18 89.16 61.05 13.81

June 30, 2025 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $454,265K ÷ $0K
= —

The interest coverage ratio of Trade Desk Inc. exhibits significant fluctuations over the analyzed period. Initially, as of September 30, 2020, the ratio stood at a strong 13.81, indicating the company's robust ability to meet its interest obligations. Throughout 2020 and early 2021, the ratio escalated sharply, reaching exceptional levels of 61.05 in December 2020, 89.16 in March 2021, and peaking at 125.34 by September 2021. This trend reflects an increasingly favorable position in covering interest expenses, likely due to strong earnings or reduced leverage during that period.

However, from late 2021 onward, the ratio experienced a significant decline, dropping to 34.38 in December 2021 and further decreasing to 14.77 in March 2022. The downward trend continued into mid-2022, with the ratio turning negative at -7.65 in June 2022 and further declining to -17.78 in September 2022, signifying that the company's earnings were insufficient to cover interest expenses during these quarters, possibly due to increased interest obligations, declining earnings, or extraordinary expenses.

Subsequently, the ratio shows signs of recovery; it registers positive again at 3.75 in December 2022 and maintains modest positive values in 2023, reaching 2.13 in March 2023 and rising slightly to 2.56 in September 2023. The trend continues into 2024 with the ratio improving further, recorded at 3.83 in March, 7.45 in June, and reaching 9.72 in September.

Projections for late 2024 indicate further strengthening, with the ratio estimated at 2.27 in December 2024, continuing an upward trajectory towards 3.83 in March 2025 and potentially higher in subsequent quarters, although data beyond the first quarter of 2025 are unavailable.

Overall, the data illustrates periods of strong interest coverage punctuated by phases of significant deterioration, including temporary negative ratios, before gradually recovering in recent periods. Such patterns may suggest fluctuations in earnings capacity, changes in debt levels, or variations in interest obligations, underscoring periods of financial stress and subsequent stabilization in Trade Desk Inc.'s financial performance.