The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. The Trade Desk's quick ratio for the quarter that ended in Dec. 2023 was 1.72.
The Trade Desk has a quick ratio of 1.72. It generally indicates good short-term financial strength.
The historical rank and industry rank for The Trade Desk's Quick Ratio or its related term are showing as below:
TTD'
s Quick Ratio Range Over the Past 10 Years
Min: 1.48 Med: 1.57 Max: 1.9
Current: 1.72
During the past 10 years, The Trade Desk's highest Quick Ratio was 1.90. The lowest was 1.48. And the median was 1.57.
TTD's Quick Ratio is ranked better than 51.63% of 2826
companies
in the Software industry
Industry Median: 1.665
vs TTD: 1.72
The Trade Desk Quick Ratio Historical Data
The historical data trend for The Trade Desk's Quick Ratio 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.
Competitive Comparison of The Trade Desk's Quick Ratio
For the Software - Application subindustry, The Trade Desk's Quick Ratio, along with its competitors' market caps and Quick Ratio 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's Quick Ratio Distribution in the Software Industry
For the Software industry and Technology sector, The Trade Desk's Quick Ratio distribution charts can be found below:
* The bar in red indicates where The Trade Desk's Quick Ratio falls into.
The Trade Desk Quick Ratio Calculation
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
The Trade Desk's Quick Ratio for the fiscal year that ended in Dec. 2023 is calculated as
* 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.
The Trade Desk (NAS:TTD) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
The Trade Desk Quick Ratio Related Terms
Thank you for viewing the detailed overview of The Trade Desk's Quick Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
The Trade Desk (The Trade Desk) Business Description
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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