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The Trade Desk (BSP:T2TD34) Debt-to-EBITDA

: 0.36 (As of Dec. 2023)
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Debt-to-EBITDA measures a company's ability to pay off its debt.

The Trade Desk's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was R$272 Mil. The Trade Desk's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was R$884 Mil. The Trade Desk's annualized EBITDA for the quarter that ended in Dec. 2023 was R$3,233 Mil. The Trade Desk's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 0.36.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for The Trade Desk's Debt-to-EBITDA or its related term are showing as below:

BSP:T2TD34' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.35   Med: 1.42   Max: 25.74
Current: 0.84

During the past 10 years, the highest Debt-to-EBITDA Ratio of The Trade Desk was 25.74. The lowest was 0.35. And the median was 1.42.

BSP:T2TD34's Debt-to-EBITDA is ranked better than
54.07% of 1596 companies
in the Software industry
Industry Median: 1.035 vs BSP:T2TD34: 0.84

The Trade Desk Debt-to-EBITDA Historical Data

The historical data trend for The Trade Desk's Debt-to-EBITDA 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.

* Premium members only.

The Trade Desk Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.42 1.69 1.70 1.55 0.84

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
Debt-to-EBITDA Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.56 -15.80 1.02 1.07 0.36

Competitive Comparison

For the Software - Application subindustry, The Trade Desk's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


The Trade Desk Debt-to-EBITDA Distribution

For the Software industry and Technology sector, The Trade Desk's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where The Trade Desk's Debt-to-EBITDA falls into.



The Trade Desk Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

The Trade Desk's Debt-to-EBITDA for the fiscal year that ended in Dec. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(272.056 + 883.772) / 1376.344
=0.84

The Trade Desk's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(272.056 + 883.772) / 3233.22
=0.36

* 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.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Dec. 2023) EBITDA data.


The Trade Desk  (BSP:T2TD34) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


The Trade Desk Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of The Trade Desk's Debt-to-EBITDA provided by GuruFocus.com. Please click on the following links to see related term pages.


The Trade Desk (BSP:T2TD34) Business Description

Traded in Other Exchanges
Address
42 N. Chestnut Street, Ventura, CA, USA, 93001
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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