GURUFOCUS.COM » STOCK LIST » USA » NAS » The Trade Desk Inc (NAS:TTD) » Definitions » Financial Strength
Switch to:

The Trade Desk Financial Strength

: 8 (As of Jun. 2022)
View and export this data going back to 2016. Start your Free Trial

The Trade Desk has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

The Trade Desk Inc shows strong financial strength.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

GuruFocus does not calculate The Trade Desk's interest coverage with the available data. The Trade Desk's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.18. As of today, The Trade Desk's Altman Z-Score is 12.21.


Competitive Comparison

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

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

* The bar in red indicates where The Trade Desk's Financial Strength falls into.



The Trade Desk Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

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

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:

The Trade Desk's Interest Expense for the months ended in Jun. 2022 was $0 Mil. Its Operating Income for the months ended in Jun. 2022 was $2 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $219 Mil.

The Trade Desk's Interest Coverage for the quarter that ended in Jun. 2022 is

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.

2. Debt to revenue ratio. The lower, the better.

The Trade Desk's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(48.287 + 219.341) / 1507.848
=0.18

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

The Trade Desk has a Z-score of 12.21, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 12.21 is strong.

* 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) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

The Trade Desk has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.


The Trade Desk Financial Strength Related Terms

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


The Trade Desk Business Description

The Trade Desk logo
Traded in Other Exchanges
Address
42 N. Chestnut Street, Ventura, CA, USA, 93001
The Trade Desk Inc is engaged in providing a technology platform for ad buyers. Through its cloud-based platform ad buyers can create, manage, and optimize data-driven digital advertising campaigns across ad formats and channels, including display, video, audio, in-app, native and social, on a multitude of devices. Its products include Data Management Platform, Cross-Device Targeting, Video Advertising, Mobile Advertising, and others.
Executives
Cunningham Andrea Lee director C/O TRADE DESK, INC. 42 N. CHESTNUT STREET VENTURA CA 93001
Hulst Michelle officer: Chief Operating Officer 130 MERCHANT STREET HONOLULU HI 96813
Grant Jay R officer: Chief Legal Officer 225 E. 79TH STREET APT 12E NEW YORK NY 10075
Falk Thomas director 2220 WEST 14TH STREET TEMPE AZ 85281
Grayson Blake Jeffrey officer: Chief Financial Officer 2212 EVERETT AVENUE E SEATTLE WA 98102
Buyer Lise J director 1600 AMPHITHEATRE PARKWAY MOUNTAIN VIEW CA 94043
Vobejda Susan officer: Chief Marketing Officer 130 EAST RANDOLPH STREET, 7TH FLOOR CHICAGO IL 60601
Yang Vivian officer: Chief Legal Officer 100 NORTH CRESCENT DRIVE, SUITE 200 BEVERLY HILLS CA 90210
Rajaram Gokul director 301 CONGRESS AVENUE SUITE 700 AUSTIN TX 78701
Frankel David A. 10 percent owner 1 MIFFLIN PLACE SUITE 300 CAMBRIDGE MA 02138
Founder Collective Gp, Llc 10 percent owner 1 MIFFLIN PLACE SUITE 300 CAMBRIDGE MA 02138
Paley Eric B director, 10 percent owner C/O THE TRADE DESK, INC. 42 N. CHESTNUT ST. VENTURA CA 93001
Founder Collective Entrepreneurs' Fund, Llc 10 percent owner 1 MIFFLIN PLACE, SUITE 300 CAMBRIDGE MA 02138
Founder Collective, L.p. 10 percent owner 1 MIFFLIN PLACE, SUITE 300 CAMBRIDGE MA 02138
Pickles David Randall officer: Chief Technology Officer 42 N. CHESTNUT STREET VENTURA CA 93001

The Trade Desk Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)