DoorDash, Inc. (NASDAQ:DASH)

Current Income Tax Expense

The current income tax expense shows a general increasing trend over the five-year period. Starting from a low of 3 million US dollars in 2020, it rose slightly to 4 million in both 2021 and 2022. There is a significant increase observed in 2023, where the current tax expense jumped to 32 million, further rising to 38 million in 2024. This substantial increase in the latter years suggests higher taxable income or adjustments in the company's tax position affecting the current period tax liabilities.

Deferred Income Tax Expense

The deferred income tax expenses exhibit more volatility compared to the current tax expense. There were no reported deferred taxes in 2020. In 2021, a small deferred tax expense of 1 million was recorded, followed by a significant deferred tax benefit (negative expense) of 35 million in 2022. In 2023, the deferred tax expense returned to a small charge of 1 million (shown as -1, indicating a benefit), and then slightly increased back to 1 million in 2024. The considerable benefit in 2022 suggests a reversal of previously recognized deferred tax liabilities or recognition of deferred tax assets, likely relating to changes in temporary differences or tax planning strategies during that year.

Provision for Income Taxes

The overall provision for income taxes reflects the combined effect of current and deferred taxes. From 2020 to 2021, there is a modest increase from 3 million to 5 million. However, in 2022, the provision shows a substantial benefit of 31 million (negative expense), largely due to the significant deferred tax benefit recorded that year. In 2023, the provision sharply reverses to a charge of 31 million, closely mirroring the increased current tax expense. This trend continues in 2024 with a further increase to 39 million. This pattern implies fluctuations in taxable income and the timing differences that influence deferred taxes, resulting in the erratic movement in the total tax provision.

The analysis of the annual financial data reveals several notable trends in the tax rates over the five-year period.

Federal Statutory Tax Rate

The federal statutory tax rate remained constant at 21% throughout the entire period from 2020 to 2024, indicating no changes in the standard corporate tax rate applicable to the entity during these years.

Effective Tax Rate

The effective tax rate exhibited significant fluctuations over the same timeframe. In 2020 and 2021, the effective tax rate was negative, recorded at -1%, suggesting the company recognized tax benefits or losses that impacted its tax expense favorably. In 2022, the effective tax rate shifted to a slightly positive 2%, indicating the company began incurring some tax expenses relative to its earnings.

A notable decline occurred in 2023, with the effective tax rate dropping to -5.81%, further intensifying the negative tax impact, possibly due to increased tax credits or losses during that year. Finally, in 2024, the effective tax rate surged to 25%, exceeding the constant statutory rate by 4 percentage points. This increase may reflect adjustments in tax liabilities, changes in earnings composition, or the expiration of previously utilized tax benefits.

Overall, the variability in the effective tax rate compared to the steady statutory rate highlights the influence of the company’s operational results, tax planning strategies, or temporary differences affecting its annual tax obligations. The transition from negative to positive and then above-statutory effective tax rates suggests fluctuating profitability or sporadic tax effects impacting the reported tax expenses.

The financial data reveals several notable trends over the five-year period ending December 31, 2024. The loss carryovers initially increased sharply from $180 million in 2020 to $1,050 million in 2021, followed by a decline to $660 million in 2022. Subsequently, they showed a moderate upward trajectory reaching $808 million by 2024. This pattern suggests periods of significant losses with some recovery over time.

Tax credits exhibited strong growth from $23 million in 2020 to $237 million in 2021. After a slight decrease to $209 million in 2022, credits steadily increased to $376 million by 2024, indicating an improving tax benefit position possibly due to greater qualifying activities or improvements in profitability.

Capitalized research and development expenses appeared from 2022 onward, rising consistently from $619 million in 2022 to $886 million in 2024. This trend points to increased investment in innovation and development activities in recent years.

Stock-based compensation expenses fluctuated during the period, starting at $72 million in 2020, halving to $36 million in 2021, rising again to $74 million in 2022, then declining to $43 million in 2023 before a marginal increase to $54 million in 2024. These fluctuations may reflect changes in employee compensation structure or share price volatility impacting valuation.

Lease liabilities steadily increased from $64 million in 2020 to $149 million in 2024, indicating an expanding lease portfolio or longer lease terms. This rise is complemented by increasing accruals and reserves, which grew continuously from $95 million in 2020 to $360 million in 2024, reflecting heightened obligations or risk provisions.

The "Other" category, reported from 2022, demonstrated a gradual increase from $88 million to $112 million by 2024, suggesting an expanding range of assets or receivables not specified elsewhere.

Gross deferred tax assets grew substantially from $434 million in 2020 to $2,745 million in 2024, indicating an increasing recognition of future tax benefits. However, this was offset by a rising valuation allowance from negative $357 million in 2020 to negative $2,352 million in 2024, which diminished the net deferred tax assets to relatively modest positive amounts held steady between $77 million and $393 million over the period. This implies cautious recognition of tax benefits likely due to uncertainty in future profitability.

On the liabilities side, property and equipment along with intangible assets consistently showed negative values that deepened from negative $19 million in 2020 to negative $224 million in 2024, suggesting amortization, impairment, or disposals exceeding acquisitions. Lease assets followed a similar pattern, increasing in negative value from negative $51 million to negative $111 million, consistent with the rise in lease liabilities.

Prepaid expenses and other assets became increasingly negative, moving from negative $10 million in 2020 to negative $62 million in 2024, implying either higher prepaid expenses or reclassification effects affecting asset composition.

Gross deferred tax liabilities escalated from negative $80 million in 2020 to negative $397 million in 2024, highlighting growing deferred tax obligations, likely related to timing differences in expense recognition or asset depreciation. Despite this, net deferred tax assets (liabilities) remained relatively stable at slight negative amounts between negative $3 million and $4 million, reflecting a balanced but cautious approach to deferred tax accounting.

The financial data presents a multi-year overview of the reported and adjusted liabilities, stockholders' equity, and net income (loss) for the company, captured from the end of 2020 through the projected values for the end of 2024.

Total Liabilities

There has been a clear upward trend in total liabilities, both reported and adjusted, over the five-year period. Starting at approximately US$1.65 billion in 2020, liabilities increased steadily each year, reaching over US$5 billion by 2024. The adjusted liabilities track very closely with the reported figures, showing only minimal differences, suggesting that adjustments for deferred or annual income taxes had limited impact on the liability amounts reported.

Stockholders’ Equity

Stockholders’ equity also shows a general upward movement during the same period. Beginning around US$4.7 billion in 2020, equity dipped slightly by 2021 but then experienced significant growth by 2022, continuing to rise through 2023 and 2024. The adjusted stockholders’ equity figures mirror the reported values very closely, indicating consistent treatment in accounting for tax adjustments or other factors affecting equity valuation.

Net Income (Loss) Attributable to Common Stockholders

The net income (loss) figures reveal a challenging profitability environment. Both reported and adjusted values indicate losses throughout most of the period, with the largest loss occurring in 2022 (approximately -US$1.4 billion adjusted). Following this trough, losses were reduced significantly in 2023, and by 2024, net income turns positive, albeit modestly, to around US$123-124 million. The close alignment between reported and adjusted net income/loss values again indicates limited impact of tax adjustments on the company's profitability metrics at this reported level.

Overall, the company exhibits steady growth in liabilities and stockholders’ equity through 2024, with challenges in profitability largely prevailing until a turnaround to a positive net income in the final reported period. The minimal differences between reported and adjusted figures across all categories suggest that income tax adjustments do not materially affect the financial statements in these areas.

Net Profit Margin Trends

Both reported and adjusted net profit margins exhibit a generally negative performance from 2020 through 2023, with margins fluctuating between approximately -6% and -21%. The deepest decline occurs in 2022, where the adjusted margin reaches its lowest point at -21.27%. A notable improvement is observed in 2024, with margins turning positive for the first time in the period, reaching around 1.15% to 1.16%.

Financial Leverage Patterns

The financial leverage ratio demonstrates a consistent upward trend over the five years, both in reported and adjusted terms. Starting from 1.35 in 2020, it increases steadily to 1.65 by the end of 2024. This indicates a gradual increase in the use of debt relative to equity during the time frame.

Return on Equity (ROE) Developments

ROE values, adjusted and reported, follow a pattern similar to net profit margins, showing persistent negative returns from 2020 through 2023. The deepest negative ROE is recorded in 2022, with adjusted ROE falling to -20.72%. Improvement begins in 2023 and continues into 2024, culminating in a slightly positive ROE of approximately 1.58% to 1.59%.

Return on Assets (ROA) Analysis

ROA figures also remain negative throughout the earlier years, indicating that asset utilization did not generate positive returns until recently. The most significant decline occurs in 2022, with adjusted ROA dropping to -14.3%. As with other profitability metrics, a recovery phase is evident in 2023 and 2024, with ROA turning positive at about 0.96% to 0.97% by the last reported period.

Comprehensive Observations

The data reveal a general pattern of financial stress and unprofitability through the early years, reaching peaks of negative performance in 2022 across all profitability metrics. Gradual improvements from 2023 onward suggest operational or strategic changes leading to a turnaround. The consistent increase in financial leverage throughout the period may have influenced both risk levels and return outcomes. The convergence of reported and adjusted figures indicates that deferred income tax adjustments had minimal effect on the overall reported financial trends.

The reported and adjusted net income attributable to common stockholders exhibits significant fluctuations over the observed periods. Initially, the net income shows a substantial loss of -461 million US dollars in 2020, which slightly worsens to -468 million in 2021. In 2022, the loss deepens considerably to -1,365 million reported and -1,400 million adjusted, indicating a period of intensified financial challenges. However, the losses contract sharply in 2023 to -558 million, reflecting a substantial improvement, and by 2024, the company reports a positive net income of 123 million, highlighting a reversal to profitability.

The net profit margin trend parallels the net income figures, starting with negative margins of -15.97% reported and adjusted in 2020. The margin improves slightly in 2021 to around -9.5% but then deteriorates sharply in 2022 to approximately -20.7% reported and -21.3% adjusted, corresponding with the peak net losses. In 2023, the margin recovers substantially to around -6.5%, followed by a positive margin of about 1.15% in 2024, consistent with the return to profit.

Net Income Trends

Marked by significant volatility, the data indicates a peak loss in 2022, followed by rapid recovery and eventual profitability in 2024.

Net Profit Margin Trends

The profit margins mirror net income patterns, with the worst performance in 2022 and a steady improvement thereafter culminating in a positive margin by 2024.

Adjustment Impact

The adjusted figures closely track the reported data, showing minimal variance, which suggests that deferred income tax adjustments have a limited effect on overall profitability metrics in the given periods.

Overall, the data reflect a challenging financial environment through 2022, with the company managing to substantially reduce losses and transition into profitable operations by 2024. The profit margin recovery further reinforces this positive shift in financial health.

The financial data reveals several important trends in the reported and adjusted stockholders’ equity as well as financial leverage ratios over the five-year period from the end of 2020 to the end of 2024.

Stockholders’ Equity

The reported stockholders’ equity demonstrates a generally increasing trend, rising from 4,700 million US dollars in 2020 to 7,803 million US dollars in 2024. This represents a significant increase during the period, with a notable jump between 2021 and 2022 from 4,667 million to 6,754 million US dollars. The adjusted stockholders’ equity mirrors this trend closely, with slightly higher values each year compared to the reported figures, but the differences remain minimal and consistent.

Financial Leverage

The financial leverage, both reported and adjusted, shows a moderate upward trend over the course of the five years. Starting at a ratio of 1.35 in 2020, it increases steadily to 1.65 by 2024. The increase is particularly marked after 2021, indicating a gradual increase in the use of debt relative to equity financing. The reported and adjusted ratios are identical throughout the period, suggesting the adjustments for deferred and income tax do not significantly affect the leverage metric.

Overall, the data suggests the company has been growing its equity base substantially, particularly after 2021, while simultaneously increasing its financial leverage. The consistency between reported and adjusted figures implies that tax-related adjustments have minimal influence on the core equity and leverage metrics. The upward trend in leverage suggests a strategic shift towards greater reliance on debt financing as the company expands.

The financial data reveals several noteworthy trends over the five-year period. The company's net income, both reported and adjusted, exhibits a pattern of significant losses followed by a positive turnaround in the final year. Stockholders' equity shows steady growth throughout, while the return on equity (ROE) mirrors the net income trends, showing losses initially and improvement in the last year.

Net Income (Loss) Attributable to Common Stockholders

The reported net income (loss) remains negative from 2020 through 2023, with the largest loss occurring in 2022 (-1365 million USD). The loss appears to somewhat diminish in 2023 (-558 million USD) before turning positive in 2024 (123 million USD). The adjusted net income follows a similar pattern, with slightly larger losses in 2022 and 2023 compared to reported figures, and a positive result in 2024 (124 million USD). This indicates the company faced substantial challenges during the period but showed signs of recovery by the end of 2024.

Stockholders' Equity

Reported stockholders’ equity increases steadily each year, starting at 4700 million USD in 2020 and reaching 7803 million USD by 2024. Adjusted stockholders’ equity closely aligns with these figures, indicating consistency in equity valuations whether adjustments are made or not. The overall upward trend suggests retained earnings, capital injections, or a combination of factors supporting equity growth despite periods of net losses.

Return on Equity (ROE)

The reported ROE is negative from 2020 to 2023, peaking in negativity in 2022 at -20.21%, correlating with the largest net loss year. The ROE improves in 2023 (-8.2%) and becomes positive in 2024 (1.58%). The adjusted ROE data parallels these movements but shows a slightly more negative peak in 2022 (-20.72%) and a similar positive turnaround in 2024 (1.59%). This progression supports the observation of a recovery phase, with profitability starting to be realized on equity invested.

The annual financial data reveals significant variability in the reported and adjusted net income figures for the periods examined. Initially, the company experienced substantial net losses, with the reported net income (loss) attributable to common stockholders recorded at -461 million US dollars as of December 31, 2020. This loss marginally increased to -468 million US dollars in 2021. A notable deterioration occurred in 2022, where the net loss expanded markedly to -1,365 million US dollars. Subsequently, there was an improvement in 2023, with the loss reducing to -558 million US dollars, followed by a positive net income of 123 million US dollars in 2024. The adjusted net income follows a similar trajectory with slightly greater losses in some years, indicating the adjustments result in a generally more conservative measure of profitability.

The return on assets (ROA), both reported and adjusted, mirrors the pattern observed in net income figures. The reported ROA began at -7.26% in 2020 and showed a slight decrease in magnitude to -6.87% in 2021. In 2022, the ROA declined sharply to -13.94%, aligning with the pronounced net income loss during the same period. Thereafter, a recovery trend emerged, with the ROA improving to -5.15% in 2023 and turning positive to 0.96% in 2024. Adjusted ROA statistics show almost identical trends and values, corroborating the impacts of the adjustments were minimal on overall asset profitability assessment.

Overall, the data depict a company that encountered escalating losses culminating in a peak in 2022, followed by a recovery phase leading to profitability in 2024. The improvements in both net income and ROA in the latter years suggest enhanced operational efficiency and/or favorable changes in business conditions. The alignment between reported and adjusted figures highlights consistency in the underlying financial performance, with adjustments slightly deepening the loss figures during downturns but not significantly altering the recovery narrative.