DoorDash, Inc. (NASDAQ:DASH)

Goodwill and intangible assets experienced significant fluctuations over the analyzed period. A substantial increase in both goodwill and specific intangible asset categories is evident between 2021 and 2025, suggesting active acquisitions and internal development of intangible value.

Goodwill

Goodwill began at US$316 million in 2021 and rose dramatically to US$2,370 million in 2022. It continued to increase, albeit at a slower pace, reaching US$2,432 million in 2023 before decreasing to US$2,315 million in 2024. A significant jump occurred in 2025, with goodwill reaching US$5,519 million. This pattern indicates substantial business combinations in 2022 and 2025, potentially followed by reassessments or adjustments in subsequent periods.

Intangible Assets - Gross

Gross intangible assets followed a similar trajectory to goodwill, increasing from US$132 million in 2021 to US$938 million in 2022. Growth continued to US$964 million in 2023, followed by a slight decrease to US$913 million in 2024, and a substantial increase to US$2,900 million in 2025. This mirrors the activity observed in goodwill, reinforcing the notion of significant investment in, or acquisition of, intangible assets.

Intangible Assets - Net

Net intangible assets, calculated as gross intangible assets less accumulated amortization, increased from US$61 million in 2021 to US$765 million in 2022. The growth slowed to US$659 million in 2023 and further to US$510 million in 2024. A considerable increase was observed in 2025, reaching US$2,260 million. The increasing accumulated amortization, rising from US$71 million in 2021 to US$640 million in 2025, offsets some of the gross asset growth, but the net value still demonstrates a strong upward trend.

Key Intangible Asset Categories

Several intangible asset categories exhibited notable growth. Existing technology increased from US$71 million in 2021 to US$622 million in 2025. Merchant relationships grew from US$45 million to US$854 million over the same period. Customer relationships increased from US$9 million to US$798 million. Trade name and trademarks increased from US$6 million to US$602 million. The emergence of Rider relationships at US$14 million in 2025 suggests a recent recognition of value in this area. Courier relationships were reported at US$12 million in 2022 and 2023, with no value reported in 2024 or 2025. An assembled workforce in asset acquisition was first reported at US$10 million in 2024 and remained consistent in 2025.

Goodwill and Intangible Assets, Net

The combined net value of goodwill and intangible assets increased from US$377 million in 2021 to US$3,135 million in 2022. It fluctuated to US$3,091 million in 2023 and US$2,825 million in 2024 before reaching US$7,779 million in 2025. This overall upward trend underscores the increasing importance of intangible value to the entity’s net asset base.

The significant increases in both goodwill and intangible assets, particularly in 2022 and 2025, warrant further investigation into the underlying acquisitions and internal development activities driving these changes. The consistent growth in accumulated amortization should also be monitored to assess the ongoing utilization and economic life of these assets.

The information presents a five-year trend of reported and adjusted total assets, as well as reported and adjusted stockholders’ equity. The adjustments appear to relate to the removal of goodwill and associated intangible assets, as evidenced by the consistent difference between the reported and adjusted figures.

Total Assets Trend

Reported total assets demonstrate a consistent upward trend over the five-year period, increasing from 6,809 US$ millions in 2021 to 19,659 US$ millions in 2025. However, adjusted total assets, which exclude the impact of goodwill, exhibit a more moderate growth pattern. While also increasing over time, the adjusted total assets grew from 6,493 US$ millions in 2021 to 14,140 US$ millions in 2025. The divergence between reported and adjusted total assets widens over the period, indicating a growing amount of goodwill on the balance sheet.

Stockholders’ Equity Trend

Reported stockholders’ equity generally increased from 4,667 US$ millions in 2021 to 10,033 US$ millions in 2025. Adjusted stockholders’ equity, however, shows a more volatile pattern. It initially decreased from 4,351 US$ millions in 2021 to 4,374 US$ millions in 2023, before increasing to 5,488 US$ millions in 2024 and then decreasing significantly to 4,514 US$ millions in 2025. The difference between reported and adjusted stockholders’ equity is most pronounced in 2025, suggesting a substantial impact from the goodwill adjustment in that year.

Impact of Adjustments

The difference between reported and adjusted figures for both total assets and stockholders’ equity consistently indicates the presence of goodwill. The increasing gap in total assets suggests an accumulation of goodwill through acquisitions. The fluctuation in adjusted stockholders’ equity, particularly the decrease in 2025, implies a potential write-down or impairment of goodwill, significantly reducing the adjusted equity value. The magnitude of the adjustment to stockholders’ equity in 2025 is notably larger than in previous years.

In summary, the analysis reveals a growing reliance on goodwill as a component of reported assets and equity. The adjustments highlight the sensitivity of reported equity to changes in goodwill valuation, and the 2025 figures suggest a potentially significant impairment event occurred during that period.

The financial metrics demonstrate notable shifts when goodwill is removed from the calculations. Generally, the adjusted ratios present a more conservative view of financial performance than the reported figures, particularly concerning profitability and leverage. Over the observed period, several key trends emerge.

Total Asset Turnover

Reported total asset turnover fluctuates between 0.67 and 0.83, showing a slight increase from 2022 to 2023, followed by a decrease in the latest year. However, the adjusted total asset turnover consistently exceeds the reported value, increasing from 0.75 in 2021 to a peak of 1.03 in 2023 before declining to 0.97 in 2025. This suggests that excluding goodwill improves the efficiency with which assets are utilized to generate revenue.

Financial Leverage

Reported financial leverage exhibits a steady increase from 1.46 to 1.96, indicating a growing reliance on debt financing. The adjusted financial leverage mirrors this trend but is more pronounced, rising from 1.49 to 3.13. The larger increase in adjusted leverage highlights the impact of goodwill on the reported leverage ratio; its removal reveals a greater degree of financial risk.

Return on Equity (ROE)

Reported ROE transitions from negative values in the initial years to positive figures in 2024 and 2025, indicating improving profitability relative to shareholder equity. The adjusted ROE, however, remains negative for a longer period and exhibits greater volatility. While the reported ROE reaches 9.32% in 2025, the adjusted ROE is 20.71%, suggesting that goodwill significantly inflates the reported ROE. The initial negative values are more severe when goodwill is excluded.

Return on Assets (ROA)

Similar to ROE, reported ROA moves from negative values to positive figures, reaching 4.76% in 2025. The adjusted ROA also shows improvement over time but remains lower than the reported ROA throughout the period. The difference between the reported and adjusted ROA widens in later years, again demonstrating the positive impact of goodwill on reported profitability metrics. The adjusted ROA reaches 6.61% in 2025.

In summary, removing goodwill from the calculations results in lower, but potentially more realistic, values for asset turnover and profitability ratios. The adjusted financial leverage ratio indicates a higher level of financial risk than the reported ratio. The trend suggests that goodwill plays a substantial role in the reported financial performance, and its exclusion provides a more conservative assessment of the company’s financial position.

An examination of the financial information reveals trends in both total asset values and associated turnover ratios over a five-year period. Reported total assets demonstrate a consistent increase annually, growing from US$6,809 million in 2021 to US$19,659 million in 2025. Adjusted total assets, which exclude certain items, also exhibit growth, albeit at a slower pace than reported total assets, increasing from US$6,493 million to US$14,140 million over the same timeframe.

Reported Total Asset Turnover

The reported total asset turnover ratio fluctuates over the period. It begins at 0.72 in 2021, decreases to 0.67 in 2022, then increases to 0.83 in 2024 before declining to 0.70 in 2025. This suggests a varying efficiency in generating revenue from reported assets, with a peak in 2024 followed by a decrease in the final year.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio shows a generally increasing trend from 2021 to 2023, rising from 0.75 to 1.03. This indicates improving efficiency in revenue generation when considering adjusted assets. However, the ratio plateaus in 2024 at 1.02 and then decreases slightly to 0.97 in 2025. The adjusted turnover consistently exceeds the reported turnover throughout the period, suggesting that the excluded items from the adjusted asset calculation have a suppressing effect on the reported turnover ratio.

The divergence between reported and adjusted asset turnover ratios widens over time. This implies that the difference between reported and adjusted total assets is becoming more significant and impacting the efficiency metrics. The slight decline in both turnover ratios in 2025 warrants further investigation to determine the underlying causes and potential implications for future performance.

An examination of the financial information reveals evolving trends in both reported and adjusted financial leverage over the five-year period. Reported total assets demonstrate consistent growth, increasing from US$6.809 billion in 2021 to US$19.659 billion in 2025. Reported stockholders’ equity also increased, though at a slower pace, rising from US$4.667 billion to US$10.033 billion over the same timeframe. Conversely, adjusted stockholders’ equity exhibits a more volatile pattern, peaking at US$5.488 billion in 2024 before decreasing to US$4.514 billion in 2025.

Reported Financial Leverage

Reported financial leverage initially decreased slightly from 1.46 in 2021 to 1.45 in 2022, then increased steadily to 1.96 in 2025. This indicates a growing reliance on debt financing relative to reported equity as the company expands its asset base. The increase is consistent with the growth in reported total assets and a comparatively slower growth in reported stockholders’ equity.

Adjusted Financial Leverage

Adjusted financial leverage shows a more pronounced increase than its reported counterpart. It rose from 1.49 in 2021 to 3.13 in 2025. The significant jump in 2025 is particularly noteworthy. This suggests that when accounting for adjustments to both assets and equity, the company’s financial risk is substantially higher than indicated by reported figures. The decrease in adjusted stockholders’ equity in 2025 contributes significantly to this elevated leverage ratio.

Asset and Equity Adjustments

The difference between reported and adjusted total assets widens over time, indicating a growing impact from items requiring adjustment. Similarly, the adjustments to stockholders’ equity are substantial, particularly in the earlier years, and contribute to the divergence between reported and adjusted leverage. The decline in adjusted stockholders’ equity in 2025, coupled with continued growth in adjusted total assets, drives the substantial increase in adjusted financial leverage.

In summary, while reported financial leverage indicates increasing, but manageable, financial risk, the adjusted financial leverage paints a picture of a more rapidly increasing risk profile, especially in the most recent year. The adjustments made to both assets and equity appear to be increasingly significant in assessing the company’s true financial position.

Reported stockholders’ equity demonstrates a generally increasing trend over the five-year period, rising from US$4,667 million in 2021 to US$10,033 million in 2025. However, adjusted stockholders’ equity presents a more volatile pattern, initially decreasing before a substantial increase in 2024, followed by a decline in 2025. The reported return on equity (ROE) fluctuates significantly, transitioning from negative values in the earlier years to positive values in 2024 and 2025. The adjusted ROE mirrors this volatility but consistently exhibits lower values than the reported ROE throughout the period.

Stockholders’ Equity Trends

Reported stockholders’ equity increased steadily between 2021 and 2025, with the most significant growth occurring between 2024 and 2025. Adjusted stockholders’ equity remained relatively flat between 2021 and 2023, experienced a considerable increase in 2024, and then decreased in 2025, returning to a level close to that of 2023. This divergence suggests potential impacts from adjustments made to reported equity, possibly related to intangible assets or goodwill.

Return on Equity (ROE) Analysis

Reported ROE was negative in 2021, 2022, and 2023, indicating a net loss relative to stockholders’ equity. It turned positive in 2024 and continued to improve in 2025. The adjusted ROE remained negative for a longer period, only becoming positive in 2025, and consistently registered lower values than the reported ROE. The substantial difference between reported and adjusted ROE suggests that adjustments to equity have a material impact on profitability metrics.

ROE Trend Observations

The movement from negative to positive ROE, both reported and adjusted, indicates improving profitability over the period. However, the consistently lower adjusted ROE raises questions about the quality of earnings and the impact of adjustments on the true economic performance of the entity. The significant increase in adjusted ROE in 2025, while positive, warrants further investigation given the preceding decline in adjusted stockholders’ equity.

The fluctuations in adjusted stockholders’ equity and the resulting impact on adjusted ROE suggest the presence of significant non-cash adjustments affecting the reported financial position and performance. Further analysis of the nature of these adjustments is recommended to understand their underlying drivers and potential implications for future performance.

The reported and adjusted total assets exhibited a consistent upward trajectory between 2021 and 2025. However, the rate of increase accelerated notably from 2024 onwards. Analysis of the return on assets reveals a contrasting pattern, with both reported and adjusted ROA initially declining before demonstrating improvement in later periods.

Total Assets

Reported total assets increased from US$6,809 million in 2021 to US$19,659 million in 2025, representing a substantial overall growth. The increase from 2021 to 2023 was moderate, but a significant jump occurred between 2023 and 2025. Adjusted total assets followed a similar trend, rising from US$6,493 million to US$14,140 million over the same period, though at a lower magnitude.

Reported Return on Assets (ROA)

Reported ROA began at -6.87% in 2021 and deteriorated to -13.94% in 2022, indicating increasing losses relative to assets. A recovery commenced in 2023, with ROA improving to -5.15%, and continued into positive territory, reaching 0.96% in 2024 and 4.76% in 2025. This suggests improving profitability relative to the reported asset base.

Adjusted Return on Assets (ROA)

The adjusted ROA mirrored the trend of the reported ROA, starting at -7.21% in 2021 and reaching a low of -18.40% in 2022. Similar to the reported ROA, it improved to -6.64% in 2023, then to 1.17% in 2024, and finally to 6.61% in 2025. The adjusted ROA consistently presented a more negative picture than the reported ROA across all periods, indicating that the adjustments to total assets negatively impacted profitability calculations.

The divergence between reported and adjusted ROA suggests that the adjustments made to total assets are significant and have a material impact on the assessment of profitability. The substantial improvement in both reported and adjusted ROA from 2023 to 2025, coupled with the accelerated growth in total assets from 2024 onwards, warrants further investigation to understand the drivers behind these changes and their sustainability.