The Trade Desk (XTER:TT8) ROCE % : 24.06% (As of Dec. 2023)

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What is The Trade Desk ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. The Trade Desk's annualized ROCE % for the quarter that ended in Dec. 2023 was 24.06%.

The Trade Desk ROCE % Historical Data

The historical data trend for The Trade Desk's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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The Trade Desk ROCE % Chart

The Trade Desk Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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18.81

13.40

8.43

5.66

8.36

The Trade Desk Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial															17.27	-4.10	7.42	6.50	24.06

The Trade Desk ROCE % Calculation

The Trade Desk's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	183.84	/	( ( (4135.361 - 1915.681)	+	(4482.926 - 2302.438) )	/ 2 )
	=	183.84	/	( (2219.68	+	2180.488)	/ 2 )
	=	183.84	/	2200.084
	=	8.36 %

The Trade Desk's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	529.8	/	( ( (4235.645 - 2011.884)	+	(4482.926 - 2302.438) )	/ 2 )
	=	529.8	/	( ( 2223.761	+	2180.488 )	/ 2 )
	=	529.8	/	2202.1245
	=	24.06 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

The Trade Desk (XTER:TT8) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

The Trade Desk ROCE % Related Terms

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The Trade Desk (XTER:TT8) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » The Trade Desk Inc (XTER:TT8) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

TTD:USA TTD:Mexico TT8:Germany TT8:Germany T2TD34:Brazil

Address

42 N. Chestnut Street, Ventura, CA, USA, 93001

Website

https://www.thetradedesk.com

The Trade Desk provides a self-service platform that helps advertisers and ad agencies programmatically find and purchase digital ad inventory (display, video, audio, native, and social) on different devices like computers, smartphones, digital out of home, and connected TVs. It utilizes data to optimize the performance of ad impressions purchased. The firm's platform is referred to as a demand-side platform in the digital ad industry. The firm generates its revenue from fees based on a percentage of what its clients spend on advertising. The Trade Desk became a public company in 2016 and has since increased revenue at a 43% average annual rate. During that period, it has been profitable with operating margins of 10%-28%.

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