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DoorDash, Inc. pages available for free this week:
- Balance Sheet: Assets
- Analysis of Profitability Ratios
- Analysis of Liquidity Ratios
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Return on Equity (ROE) since 2020
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Calculation
| Operating profit margin | = | 100 | × | Loss from operations1 | ÷ | Revenue1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | = | 100 | × | ÷ | |||
| Dec 31, 2023 | = | 100 | × | ÷ | |||
| Dec 31, 2022 | = | 100 | × | ÷ | |||
| Dec 31, 2021 | = | 100 | × | ÷ | |||
| Dec 31, 2020 | = | 100 | × | ÷ |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 US$ in millions
The operating profit margin exhibited significant fluctuation between 2020 and 2024. Initially negative, the margin demonstrated improvement before worsening again, ultimately trending towards breakeven by the end of the analyzed period.
- Operating Profit Margin Trend
- In 2020, the operating profit margin was -15.11%. This indicates a substantial operational loss relative to revenue. A moderate improvement was observed in 2021, with the margin increasing to -9.25%, suggesting some gains in operational efficiency or cost control. However, the margin deteriorated considerably in 2022, reaching -17.07%, representing the largest operational loss during the period. A positive shift occurred in 2023, with the margin improving to -6.71%, indicating a reduction in operational losses. This positive trend continued into 2024, with the margin reaching -0.35%, approaching breakeven.
- Relationship to Revenue
- Revenue consistently increased throughout the period, moving from US$2,886 million in 2020 to US$10,722 million in 2024. Despite this revenue growth, the company experienced operational losses in each year. The improvement in the operating profit margin in 2023 and 2024 occurred concurrently with continued revenue expansion, suggesting that revenue growth alone was not sufficient to achieve profitability, but that operational improvements were contributing to a narrowing of the loss.
- Loss from Operations
- The absolute loss from operations decreased from US$436 million in 2020 to US$38 million in 2024. This decline in the magnitude of the loss aligns with the improving operating profit margin. The largest loss from operations occurred in 2022 at US$1,124 million, coinciding with the most negative operating profit margin for the period.
The trend suggests a potential path towards operational profitability, although continued monitoring is necessary to confirm sustained improvement. The company’s ability to translate revenue growth into positive operating profits will be a key indicator of future financial performance.
Comparison to Competitors
| DoorDash, Inc. | Airbnb Inc. | Booking Holdings Inc. | Chipotle Mexican Grill Inc. | McDonald’s Corp. | Starbucks Corp. | |
|---|---|---|---|---|---|---|
| Dec 31, 2024 | ||||||
| Dec 31, 2023 | ||||||
| Dec 31, 2022 | ||||||
| Dec 31, 2021 | ||||||
| Dec 31, 2020 |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).