DoorDash, Inc. (NASDAQ:DASH)

The total asset turnover ratio demonstrates an increasing trend over the observed period. Initially, the ratio was 0.45 in 2020, indicating that for every dollar of assets, the company generated 45 cents in revenue. This figure rose significantly to 0.72 in 2021, suggesting improved asset utilization. While there was a slight decrease to 0.67 in 2022, the ratio continued to climb, reaching 0.80 in 2023 and further increasing to 0.83 in 2024.

Revenue Growth & Asset Turnover Relationship

The increase in total asset turnover generally aligns with the growth in revenue. Revenue increased consistently throughout the period, from US$2,886 million in 2020 to US$10,722 million in 2024. The asset turnover ratio’s upward trajectory suggests the company is becoming more efficient in utilizing its assets to generate sales.

Asset Growth & Turnover Impact

Total assets also increased over the period, from US$6,353 million in 2020 to US$12,845 million in 2024. Despite this asset growth, the asset turnover ratio continued to improve, indicating that the increase in assets was effectively deployed to support revenue generation. The slight dip in the ratio in 2022, concurrent with a substantial increase in total assets, suggests a temporary lag in fully utilizing the expanded asset base.

The consistent rise in the total asset turnover ratio from 2023 to 2024 indicates a strengthening ability to convert investments in assets into revenue. This positive trend suggests improved operational efficiency and effective asset management practices.