DoorDash, Inc. (NASDAQ:DASH)

The current ratio exhibited a declining trend from 2020 through 2023, followed by a slight stabilization in the most recent period. Initial values indicated a strong liquidity position, which subsequently diminished before leveling off. A detailed examination of the components and the resulting ratio is presented below.

Current Ratio Trend

The current ratio decreased from 3.94 in 2020 to 2.59 in 2021, representing a substantial reduction. This decline continued, albeit at a slower pace, to 1.86 in 2022 and further to 1.64 in 2023. In 2024, the ratio experienced a marginal increase to 1.66, suggesting a potential stabilization of the company’s short-term liquidity position.

Current Assets

Current assets decreased from US$5,517 million in 2020 to US$4,565 million in 2021. A modest recovery was observed in 2022, with current assets reaching US$4,720 million. Further growth occurred in 2023 and 2024, with values of US$5,597 million and US$7,386 million respectively. This indicates an increasing trend in assets readily convertible to cash over the latter part of the analyzed period.

Current Liabilities

Current liabilities demonstrated a consistent upward trend throughout the period. From US$1,402 million in 2020, they increased to US$1,760 million in 2021, US$2,544 million in 2022, US$3,410 million in 2023, and US$4,438 million in 2024. The growth in current liabilities outpaced the growth in current assets for the first three years, contributing to the declining current ratio.

The initial decrease in the current ratio suggests a potential increase in short-term obligations relative to readily available assets. However, the recent stabilization and growth in current assets, coupled with a moderated increase in current liabilities, indicate a possible improvement in the company’s ability to meet its short-term obligations, although the ratio remains considerably lower than its 2020 level.