Return on Equity (ROE)
since 2020
Calculation
DoorDash, Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss) attributable to DoorDash, Inc. common stockholders1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | 1.58% | = | 100 | × | 123) | ÷ | 7,803) |
| Dec 31, 2023 | -8.20% | = | 100 | × | (558) | ÷ | 6,806) |
| Dec 31, 2022 | -20.21% | = | 100 | × | (1,365) | ÷ | 6,754) |
| Dec 31, 2021 | -10.03% | = | 100 | × | (468) | ÷ | 4,667) |
| Dec 31, 2020 | -9.81% | = | 100 | × | (461) | ÷ | 4,700) |
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 return on equity (ROE) exhibited significant fluctuations between 2020 and 2024. Initially negative, ROE trended downward before showing improvement and ultimately turning positive in the most recent period. This analysis details the observed patterns in ROE alongside its constituent components.
- Net Income
- Net income attributable to DoorDash, Inc. common stockholders was negative throughout the period from 2020 to 2023. Losses peaked in 2022 at US$1,365 million before decreasing to US$558 million in 2023. A substantial shift occurred in 2024, with the company reporting a net income of US$123 million.
- Stockholders’ Equity
- Stockholders’ equity demonstrated a generally increasing trend over the five-year period. A slight decrease was observed between 2020 and 2021, from US$4,700 million to US$4,667 million. However, equity increased substantially to US$6,754 million in 2022 and continued to grow, reaching US$7,803 million in 2024.
- Return on Equity (ROE)
- ROE was negative from 2020 through 2023. The lowest ROE was recorded in 2022 at -20.21%, coinciding with the largest net loss. ROE improved to -8.20% in 2023 as the net loss decreased. A significant positive change occurred in 2024, with ROE rising to 1.58%, indicating a return to profitability relative to the equity base. The improvement in ROE is attributable to the shift from net loss to net income, despite continued growth in stockholders’ equity.
The substantial improvement in ROE in 2024 suggests a positive shift in the company’s ability to generate profits from shareholder investments. However, the relatively low positive ROE in 2024 indicates that while profitability has been achieved, there is still potential for further improvement in returns.
Comparison to Competitors
DoorDash, Inc., ROE, long-term trends, comparison to competitors
| DoorDash, Inc. | Airbnb Inc. | Booking Holdings Inc. | Chipotle Mexican Grill Inc. | McDonald’s Corp. | Starbucks Corp. | |
|---|---|---|---|---|---|---|
| Dec 31, 2024 | 1.58% | 31.48% | — | 41.97% | — | — |
| Dec 31, 2023 | -8.20% | 58.69% | — | 40.13% | — | — |
| Dec 31, 2022 | -20.21% | 34.05% | 109.92% | 37.97% | — | — |
| Dec 31, 2021 | -10.03% | -7.37% | 18.86% | 28.42% | — | — |
| Dec 31, 2020 | -9.81% | -158.00% | 1.21% | 17.61% | — | — |
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).
Comparison to Sector (Consumer Services)
DoorDash, Inc., ROE, long-term trends, comparison to sector (consumer services)
| DoorDash, Inc. | Consumer Services | |
|---|---|---|
| Dec 31, 2024 | 1.58% | 481.49% |
| Dec 31, 2023 | -8.20% | 863.51% |
| Dec 31, 2022 | -20.21% | 506.32% |
| Dec 31, 2021 | -10.03% | 159.36% |
| Dec 31, 2020 | -9.81% | — |
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).
Comparison to Industry (Consumer Discretionary)
DoorDash, Inc., ROE, long-term trends, comparison to industry (consumer discretionary)
| DoorDash, Inc. | Consumer Discretionary | |
|---|---|---|
| Dec 31, 2024 | 1.58% | 27.93% |
| Dec 31, 2023 | -8.20% | 29.93% |
| Dec 31, 2022 | -20.21% | 20.78% |
| Dec 31, 2021 | -10.03% | 33.71% |
| Dec 31, 2020 | -9.81% | 24.49% |
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).