DoorDash, Inc. (NASDAQ:DASH)

The return on equity (ROE) for the analyzed period demonstrates significant volatility, transitioning from negative values to positive returns. This fluctuation correlates with substantial shifts in net income attributable to common stockholders.

Net Income and ROE Relationship

From 2020 through 2022, net income remained negative, resulting in consistently negative ROE values. The magnitude of the negative ROE increased from -9.81% in 2020 to -20.21% in 2022, indicating a worsening return for equity holders during this period. This deterioration coincided with increasing net losses. A shift occurred in 2023, with net income remaining negative but lessening in magnitude, leading to a reduced negative ROE of -8.20%.

Transition to Positive ROE

In 2024, net income turned positive, reaching US$123 million, which resulted in a positive ROE of 1.58%. This represents a substantial improvement from the prior years. The positive trend continued into 2025, with net income increasing significantly to US$935 million and the ROE rising to 9.32%. This indicates a markedly improved return for equity holders.

Stockholders’ Equity Trend

Stockholders’ equity generally increased throughout the period, from US$4,700 million in 2020 to US$10,033 million in 2025. While equity increased during periods of net loss, the negative net income suppressed the ROE. The increase in equity, combined with the positive net income in 2024 and 2025, contributed to the substantial improvement in ROE observed in those years.

Overall, the analysis reveals a company that experienced initial financial challenges reflected in negative ROE, followed by a period of recovery and increasing profitability, culminating in positive and improving ROE values.