The Trade Desk (WBO:TTD) Interest Coverage

: N/A (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. The Trade Desk's Operating Income for the three months ended in Dec. 2023 was €132 Mil. The Trade Desk's Interest Expense for the three months ended in Dec. 2023 was €0 Mil. GuruFocus does not calculate 's interest coverage with the available data. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. The Trade Desk Inc has enough cash to cover all of its debt. Its financial situation is stable.

The historical rank and industry rank for The Trade Desk's Interest Coverage or its related term are showing as below:

WBO:TTD's Interest Coverage is not ranked ^*
in the Software industry.
Industry Median: 29.52
* Ranked among companies with meaningful Interest Coverage only.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

The Trade Desk Interest Coverage Historical Data

The historical data trend for The Trade Desk's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

The Trade Desk Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

N/A

121.12

N/A

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
Interest Coverage																N/A	N/A	N/A	N/A	N/A

Competitive Comparison

For the Software - Application subindustry, The Trade Desk's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution

For the Software industry and Technology sector, The Trade Desk's Interest Coverage distribution charts can be found below:

* The bar in red indicates where The Trade Desk's Interest Coverage falls into.

The Trade Desk Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

The Trade Desk's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, The Trade Desk's Interest Expense was €0 Mil. Its Operating Income was €184 Mil. And its Long-Term Debt & Capital Lease Obligation was €165 Mil.

GuruFocus does not calculate The Trade Desk's interest coverage with the available data.

The Trade Desk's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, The Trade Desk's Interest Expense was €0 Mil. Its Operating Income was €132 Mil. And its Long-Term Debt & Capital Lease Obligation was €165 Mil.

GuruFocus does not calculate The Trade Desk's interest coverage with the available data.

The higher the ratio, the stronger the company's Financial Strength is.

The Trade Desk (WBO:TTD) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

The Trade Desk Interest Coverage Related Terms

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

The Trade Desk (WBO:TTD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » The Trade Desk Inc (WBO:TTD) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

TTD:USA TTD:Mexico 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%.