Economic Value Added (EVA)
EVA is registered trademark of Stern Stewart.
Economic value added or economic profit is the difference between revenues and costs,where costs include not only expenses, but also cost of capital.
Economic Profit
DoorDash, Inc., economic profit calculation
US$ in millions
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 NOPAT. See details »
2 Cost of capital. See details »
3 Invested capital. See details »
4 2024 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= -5 – 21.56% × 6,261 = -1,355
The financial data exhibits significant trends in the company's profitability, invested capital, and economic profit over the five-year period ending in 2024.
- Net Operating Profit After Taxes (NOPAT)
- The NOPAT remained negative throughout the observed period, indicating persistent operating losses after taxes. Initially, the losses were substantial, with values of -414 million US dollars in 2020 and -411 million US dollars in 2021. There was a marked increase in the loss magnitude in 2022, reaching -1,420 million US dollars. After this peak loss, NOPAT improved substantially in the following years, decreasing losses to -662 million US dollars in 2023 and further narrowing to -5 million US dollars in 2024, suggesting a trend towards operational profitability or at least a significant reduction in losses.
- Cost of Capital
- The cost of capital remained relatively stable over the years, fluctuating marginally around 21.4% to 21.6%. This consistency indicates a stable perceived risk and required return by investors during the period under review.
- Invested Capital
- The invested capital figures show fluctuations with an initial decrease from 4,792 million US dollars in 2020 to 3,179 million US dollars in 2021, followed by a notable increase in 2022 to 5,320 million US dollars. After a slight decline to 5,237 million US dollars in 2023, invested capital rose again to 6,261 million US dollars in 2024. These movements suggest strategic capital allocation, with increased investments in later years potentially supporting growth or operational improvements.
- Economic Profit
- Economic profit, calculated as NOPAT minus the cost of capital multiplied by invested capital, was negative throughout the period, highlighting that the company did not generate returns above the cost of capital in any year. The economic profit worsened from -1,443 million US dollars in 2020 to -2,551 million US dollars in 2022, marking the lowest point. Thereafter, a recovery trend is observed, with the economic loss narrowing to -1,787 million US dollars in 2023 and further to -1,355 million US dollars in 2024. Despite this improvement, economic profit remains negative, indicating that the company continues to destroy shareholder value but is moving closer to breakeven conditions.
Overall, the data reveals a company struggling with operational losses and value destruction but shows signs of improvement in profitability and invested capital efficiency in the last two years of the period. Stability in the cost of capital underscores a consistent risk environment, while the reduction in losses and economic profit deficit may reflect the effectiveness of recent strategic initiatives or market conditions.
Net Operating Profit after Taxes (NOPAT)
DoorDash, Inc., NOPAT calculation
US$ in millions
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 Elimination of deferred tax expense. See details »
2 Addition of increase (decrease) in allowance for credit losses.
3 Addition of increase (decrease) in equity equivalents to net income (loss) attributable to DoorDash, Inc. common stockholders.
4 2024 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 536 × 6.79% = 36
5 2024 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= 36 × 21.00% = 8
6 Addition of after taxes interest expense to net income (loss) attributable to DoorDash, Inc. common stockholders.
7 2024 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= 199 × 21.00% = 42
8 Elimination of after taxes investment income.
The financial data reveals several notable trends with respect to profitability over the five-year period analyzed.
- Net Income (Loss) attributable to common stockholders
- The net income figures demonstrate a pattern of significant losses from 2020 through 2023, with the largest loss occurring in 2022 at -1,365 million USD. There is an improvement in 2023 with a reduced loss of -558 million USD, followed by a positive net income of 123 million USD in 2024. This indicates a potential turnaround from consistent losses to profitability.
- Net Operating Profit After Taxes (NOPAT)
- NOPAT shows a similar trend to net income, with losses recorded each year from 2020 to 2023. The largest negative impact is observed in 2022 at -1,420 million USD. By 2023, the losses have decreased substantially to -662 million USD and further improve to near breakeven at -5 million USD in 2024. This suggests operational efficiency and profitability are improving, approaching a positive NOPAT by the end of the period.
Overall, the data indicates that while the company experienced substantial losses in the early years, especially in 2022, both net income and operating profitability have improved significantly by 2024. The swing from large negative values towards a positive net income highlights enhanced financial performance and potential stabilization of the business operations.
Cash Operating Taxes
DoorDash, Inc., cash operating taxes calculation
US$ in millions
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).
The financial data for the given periods from 2020 through 2024 indicates variations in both the provision for income taxes and cash operating taxes.
- Provision for (benefit from) income taxes
- The provision experienced a positive value in 2020 and 2021, increasing slightly from 3 million USD to 5 million USD. In 2022, there was a significant change with the provision showing a benefit (negative value) of -31 million USD, indicating a tax benefit or reversal. This trend reversed again in 2023 and 2024 with positive provisions of 31 million USD and 39 million USD, respectively, reflecting an increasing tax expense during these years.
- Cash operating taxes
- Cash operating taxes declined steadily over the five-year period. Starting at 13 million USD in 2020, the amount dropped to 12 million in 2021, and then more sharply to 5 million USD in 2022. There was a slight increase to 7 million USD in 2023, followed by another decrease to 4 million USD in 2024. Overall, the cash tax payments have diminished substantially, suggesting either improved tax efficiency, changes in profitability, or other tax planning strategies.
In summary, the data reflects significant fluctuations in the provision for income taxes with a notable tax benefit in 2022 that reverted back to increasing tax expenses thereafter, alongside a general downward trend in cash operating taxes paid over the five-year span. These patterns suggest changes in taxable income recognition and actual cash outflow related to taxes vary distinctly over time.
Invested Capital
DoorDash, Inc., invested capital calculation (financing approach)
US$ in millions
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 Addition of capitalized operating leases.
2 Elimination of deferred taxes from assets and liabilities. See details »
3 Addition of allowance for doubtful accounts receivable.
4 Addition of equity equivalents to stockholders’ equity.
5 Removal of accumulated other comprehensive income.
6 Subtraction of construction in progress.
7 Subtraction of marketable securities.
The financial data reveals several noteworthy trends regarding the company's capital structure and financial position over the five-year period ending in 2024.
- Total Reported Debt & Leases
- This metric demonstrates a general downward trend from 617 million USD in 2020 to 399 million USD in 2021, indicating a significant reduction in leverage or obligations during that year. Following 2021, there is a gradual increase each year, reaching 536 million USD by the end of 2024. This suggests a cautious reaccumulation of debt or lease obligations after the initial reduction.
- Stockholders' Equity
- Stockholders’ equity shows relative stability between 2020 and 2021, with a slight decline from 4700 million USD to 4667 million USD. However, from 2021 onwards, it exhibits a strong upward trajectory, climbing to 6754 million USD in 2022 and steadily increasing through 2023 and 2024 to reach 7803 million USD. This upward trend indicates augmented net assets, which could result from retained earnings, capital injections, or revaluation increases, reflecting an improving equity base and potentially greater shareholder value.
- Invested Capital
- Invested capital displays notable volatility throughout the period. From 4792 million USD in 2020, it sharply declines to 3179 million USD in 2021, a significant contraction of nearly one-third, possibly due to divestitures, asset disposals, or changes in capital allocation. Subsequently, invested capital rebounds robustly to 5320 million USD in 2022, followed by a slight decline to 5237 million USD in 2023, before rising again to 6261 million USD in 2024. The fluctuations suggest active management of capital employed in the operations, possibly reflecting strategic investments, operational adjustments, or shifts in asset composition.
Overall, the data points to a strategic approach to balancing debt obligations and equity growth, with indications of strengthening shareholder equity and active capital management despite variability in invested capital levels. The initial reduction in debt and invested capital in 2021 is followed by a phase of measured increase and growth, signaling possible initiatives aimed at financial optimization and expansion.
Cost of Capital
DoorDash, Inc., cost of capital calculations
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 89,640) | 89,640) | ÷ | 90,176) | = | 0.99 | 0.99 | × | 21.66% | = | 21.53% | ||
| 2020 Convertible Promissory Notes3 | —) | —) | ÷ | 90,176) | = | 0.00 | 0.00 | × | 0.00% × (1 – 21.00%) | = | 0.00% | ||
| Operating lease liability4 | 536) | 536) | ÷ | 90,176) | = | 0.01 | 0.01 | × | 6.79% × (1 – 21.00%) | = | 0.03% | ||
| Total: | 90,176) | 1.00 | 21.56% | ||||||||||
Based on: 10-K (reporting date: 2024-12-31).
1 US$ in millions
2 Equity. See details »
3 2020 Convertible Promissory Notes. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 46,654) | 46,654) | ÷ | 47,176) | = | 0.99 | 0.99 | × | 21.66% | = | 21.42% | ||
| 2020 Convertible Promissory Notes3 | —) | —) | ÷ | 47,176) | = | 0.00 | 0.00 | × | 0.00% × (1 – 21.00%) | = | 0.00% | ||
| Operating lease liability4 | 522) | 522) | ÷ | 47,176) | = | 0.01 | 0.01 | × | 6.60% × (1 – 21.00%) | = | 0.06% | ||
| Total: | 47,176) | 1.00 | 21.48% | ||||||||||
Based on: 10-K (reporting date: 2023-12-31).
1 US$ in millions
2 Equity. See details »
3 2020 Convertible Promissory Notes. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 21,247) | 21,247) | ÷ | 21,758) | = | 0.98 | 0.98 | × | 21.66% | = | 21.15% | ||
| 2020 Convertible Promissory Notes3 | —) | —) | ÷ | 21,758) | = | 0.00 | 0.00 | × | 0.00% × (1 – 21.00%) | = | 0.00% | ||
| Operating lease liability4 | 511) | 511) | ÷ | 21,758) | = | 0.02 | 0.02 | × | 6.39% × (1 – 21.00%) | = | 0.12% | ||
| Total: | 21,758) | 1.00 | 21.27% | ||||||||||
Based on: 10-K (reporting date: 2022-12-31).
1 US$ in millions
2 Equity. See details »
3 2020 Convertible Promissory Notes. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 35,688) | 35,688) | ÷ | 36,087) | = | 0.99 | 0.99 | × | 21.66% | = | 21.42% | ||
| 2020 Convertible Promissory Notes3 | —) | —) | ÷ | 36,087) | = | 0.00 | 0.00 | × | 0.00% × (1 – 21.00%) | = | 0.00% | ||
| Operating lease liability4 | 399) | 399) | ÷ | 36,087) | = | 0.01 | 0.01 | × | 6.81% × (1 – 21.00%) | = | 0.06% | ||
| Total: | 36,087) | 1.00 | 21.48% | ||||||||||
Based on: 10-K (reporting date: 2021-12-31).
1 US$ in millions
2 Equity. See details »
3 2020 Convertible Promissory Notes. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 48,695) | 48,695) | ÷ | 49,312) | = | 0.99 | 0.99 | × | 21.66% | = | 21.39% | ||
| 2020 Convertible Promissory Notes3 | 364) | 364) | ÷ | 49,312) | = | 0.01 | 0.01 | × | 10.00% × (1 – 21.00%) | = | 0.06% | ||
| Operating lease liability4 | 253) | 253) | ÷ | 49,312) | = | 0.01 | 0.01 | × | 8.06% × (1 – 21.00%) | = | 0.03% | ||
| Total: | 49,312) | 1.00 | 21.48% | ||||||||||
Based on: 10-K (reporting date: 2020-12-31).
1 US$ in millions
2 Equity. See details »
3 2020 Convertible Promissory Notes. See details »
4 Operating lease liability. See details »
Economic Spread Ratio
DoorDash, Inc., economic spread ratio calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Economic profit1 | (1,355) | (1,787) | (2,551) | (1,094) | (1,443) | |
| Invested capital2 | 6,261) | 5,237) | 5,320) | 3,179) | 4,792) | |
| Performance Ratio | ||||||
| Economic spread ratio3 | -21.65% | -34.12% | -47.96% | -34.40% | -30.12% | |
| Benchmarks | ||||||
| Economic Spread Ratio, Competitors4 | ||||||
| Airbnb Inc. | 27.56% | 13.12% | 14.54% | -7.72% | -114.02% | |
| Booking Holdings Inc. | 30.45% | 16.00% | 5.12% | -12.31% | -11.98% | |
| Chipotle Mexican Grill Inc. | 8.44% | 6.80% | 2.79% | -1.90% | -3.93% | |
| McDonald’s Corp. | 8.11% | 8.19% | 5.39% | 7.83% | 3.61% | |
| Starbucks Corp. | 6.84% | 8.64% | 6.22% | 7.48% | -5.21% | |
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 Economic profit. See details »
2 Invested capital. See details »
3 2024 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × -1,355 ÷ 6,261 = -21.65%
4 Click competitor name to see calculations.
The financial data over the five-year period reveals several notable trends in the company's economic profitability and capital utilization.
- Economic Profit
- The economic profit figures remain negative throughout the entire period, indicating consistent overall losses when considering the cost of capital. Notably, there is a sharp decline in economic profit in 2022, reaching -2551 million US dollars, which is the lowest point in the series. Subsequent years show some recovery, with losses decreasing to -1787 million in 2023 and further to -1355 million in 2024. Despite this improvement, economic profit remains substantially below zero, highlighting ongoing challenges in generating returns above the capital cost.
- Invested Capital
- Invested capital exhibits considerable fluctuations over the years. Initially, the value is 4792 million US dollars in 2020 but declines sharply to 3179 million in 2021. Following this dip, there is a strong rebound in 2022, with invested capital increasing to 5320 million and then slightly decreasing to 5237 million in 2023. By 2024, invested capital reaches its peak across the time frame at 6261 million US dollars. This pattern indicates shifts in asset base and possible changes in investment strategy or capital requirements.
- Economic Spread Ratio
- The economic spread ratio remains negative throughout all periods, confirming that returns generated on invested capital are less than the company’s cost of capital. The most severe negative spread is observed in 2022 at -47.96%, coinciding with the lowest economic profit figure. The ratio partially recovers thereafter, improving to -34.12% in 2023 and further to -21.65% in 2024, which suggests gradual improvement in operational efficiency or profitability although still below breakeven.
In summary, the company struggles with sustained economic losses and negative returns on invested capital during this timeline. Despite fluctuations in invested capital, there is an evident effort towards improving economic profitability and narrowing the negative spread in the latter years. However, as of the latest data point in 2024, the company has yet to achieve a positive economic profit or positive economic spread, indicating ongoing challenges in value creation for shareholders.
Economic Profit Margin
DoorDash, Inc., economic profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Economic profit1 | (1,355) | (1,787) | (2,551) | (1,094) | (1,443) | |
| Revenue | 10,722) | 8,635) | 6,583) | 4,888) | 2,886) | |
| Performance Ratio | ||||||
| Economic profit margin2 | -12.64% | -20.69% | -38.76% | -22.37% | -50.01% | |
| Benchmarks | ||||||
| Economic Profit Margin, Competitors3 | ||||||
| Airbnb Inc. | 14.93% | 7.52% | 11.48% | -6.94% | -174.58% | |
| Booking Holdings Inc. | 16.64% | 8.55% | 4.08% | -16.86% | -25.68% | |
| Chipotle Mexican Grill Inc. | 5.08% | 4.13% | 1.74% | -1.38% | -3.22% | |
| McDonald’s Corp. | 15.53% | 16.08% | 10.56% | 16.09% | 8.77% | |
| Starbucks Corp. | 4.46% | 5.34% | 3.96% | 6.10% | -5.08% | |
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 Economic profit. See details »
2 2024 Calculation
Economic profit margin = 100 × Economic profit ÷ Revenue
= 100 × -1,355 ÷ 10,722 = -12.64%
3 Click competitor name to see calculations.
The data reveals several notable financial trends over the five-year period under consideration.
- Revenue Growth
- Revenue exhibits a strong and consistent upward trajectory, increasing from $2,886 million in 2020 to $10,722 million in 2024. This represents a nearly fourfold growth in revenue over the period, indicating robust expansion in business scale and market reach.
- Economic Profit Levels
- Economic profit remains negative throughout the entire period, indicating that the company is not generating returns above its cost of capital. The economic loss is deepest in 2022, reaching -$2,551 million, while showing some improvement in later years, decreasing to -$1,355 million in 2024. Despite the losses, a recovery trend is apparent after the peak loss year.
- Economic Profit Margin
- The economic profit margin, which measures economic profit as a percentage of revenue, parallels the patterns observed in economic profit. The margin improves notably from -50.01% in 2020 to -12.64% in 2024, suggesting increasing efficiency or better cost management relative to revenue. The sharpest negative margin is recorded in 2020, with fluctuations leading to a peak negative margin in 2022 at -38.76%, followed by steady improvement.
- Overall Insights
- The overall analysis points to a company experiencing rapid revenue growth while still facing challenges in achieving positive economic profitability. The improving economic profit figures and margin in the latter years suggest strategic moves toward better capital efficiency and profitability. However, persistent negative economic profits highlight the need for continued focus on cost control and strategic investments to reach economic breakeven or profitability in the future.