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.
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- Statement of Comprehensive Income
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Analysis of Geographic Areas
- Enterprise Value (EV)
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Equity (ROE) since 2020
- Current Ratio since 2020
- Total Asset Turnover since 2020
- Price to Sales (P/S) since 2020
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Economic Profit
DoorDash, Inc., economic profit calculation
US$ in millions
| 12 months ended: | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|---|
| Net operating profit after taxes (NOPAT)1 | ||||||
| Cost of capital2 | ||||||
| Invested capital3 | ||||||
| Economic profit4 | ||||||
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
= – × =
The financial performance, as measured by economic profit, demonstrates a consistent negative trend over the five-year period. Net operating profit after taxes (NOPAT) fluctuates significantly, while the cost of capital remains relatively stable. Invested capital generally increases, contributing to the persistent negative economic profit.
- NOPAT Trend
- Net operating profit after taxes exhibits considerable volatility. It begins with losses of approximately $414 million in both 2020 and 2021. A substantial increase in the loss to $1,420 million is observed in 2022, followed by a reduction to $662 million in 2023. A dramatic improvement is then seen in 2024, with NOPAT nearing breakeven at a loss of $5 million.
- Cost of Capital
- The cost of capital remains consistently high throughout the period, ranging between 25.94% and 26.32%. Minor fluctuations are present, but the overall cost of capital remains relatively unchanged, suggesting a stable risk profile or capital structure.
- Invested Capital
- Invested capital decreased from $4,792 million in 2020 to $3,179 million in 2021. It then increased to $5,320 million in 2022 and remained relatively stable at $5,237 million in 2023. A further increase to $6,261 million is observed in 2024, indicating continued investment in the business.
- Economic Profit
- Economic profit is consistently negative across all five years. The magnitude of the loss decreases from $1,670 million in 2020 to $1,244 million in 2021. The loss then increases significantly to $2,800 million in 2022, before decreasing to $2,034 million in 2023. In 2024, the economic loss is $1,653 million, representing an improvement but still a substantial negative value. The persistent negative economic profit suggests that the company is not generating returns exceeding its cost of capital.
The improvement in NOPAT in 2024, coupled with the increase in invested capital, contributes to a smaller economic loss compared to previous years. However, the company continues to destroy economic value, as indicated by the consistently negative economic profit.
Net Operating Profit after Taxes (NOPAT)
DoorDash, Inc., NOPAT calculation
US$ 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
= × =
5 2024 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= × 21.00% =
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
= × 21.00% =
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 | ÷ | = | × | = | |||||||||
| 2020 Convertible Promissory Notes3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
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 | ÷ | = | × | = | |||||||||
| 2020 Convertible Promissory Notes3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
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 | ÷ | = | × | = | |||||||||
| 2020 Convertible Promissory Notes3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
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 | ÷ | = | × | = | |||||||||
| 2020 Convertible Promissory Notes3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
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 | ÷ | = | × | = | |||||||||
| 2020 Convertible Promissory Notes3 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Operating lease liability4 | ÷ | = | × | × (1 – 21.00%) | = | ||||||||
| Total: | |||||||||||||
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 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| Economic spread ratio3 | ||||||
| Benchmarks | ||||||
| Economic Spread Ratio, Competitors4 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
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 × ÷ =
4 Click competitor name to see calculations.
The economic spread ratio demonstrates a concerning trend over the five-year period. Initially negative, the ratio becomes increasingly unfavorable before showing some signs of improvement in the most recent year. Economic profit consistently remains negative throughout the period, indicating the company is not generating returns exceeding its cost of capital.
- Economic Spread Ratio
- The economic spread ratio declined significantly from -34.85% in 2020 to -52.63% in 2022, representing a worsening of the difference between the company’s return on invested capital and its weighted average cost of capital. This suggests a growing inability to generate sufficient returns from its investments. However, a notable shift occurs in 2023 and 2024, with the ratio improving to -38.85% and -26.41% respectively. While still negative, this indicates a lessening of the gap between returns and capital costs.
Invested capital fluctuates over the period. It decreased from US$4,792 million in 2020 to US$3,179 million in 2021, potentially due to strategic divestitures or capital management decisions. Subsequently, it increased to US$5,320 million in 2022 and remained relatively stable at US$5,237 million in 2023 before rising to US$6,261 million in 2024. This increase in invested capital in the later years, coupled with the improving economic spread ratio, suggests that recent investments may be beginning to yield more favorable returns, although economic profit remains negative.
- Economic Profit
- Economic profit remains consistently negative throughout the observed period, ranging from -US$1,670 million to -US$2,800 million. While the magnitude of the loss decreased in 2024 to -US$1,653 million, it still signifies that the company’s earnings are insufficient to cover its cost of capital. The correlation between the negative economic profit and the negative economic spread ratio confirms that the company is destroying economic value.
The observed trend suggests that while the company faced significant challenges in generating economic value, recent performance indicates a potential turning point. The improvement in the economic spread ratio, alongside the increase in invested capital, warrants further investigation to determine the sustainability of this positive shift and its impact on long-term profitability.
Economic Profit Margin
DoorDash, Inc., economic profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Economic profit1 | ||||||
| Revenue | ||||||
| Performance Ratio | ||||||
| Economic profit margin2 | ||||||
| Benchmarks | ||||||
| Economic Profit Margin, Competitors3 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
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 × ÷ =
3 Click competitor name to see calculations.
The economic profit margin demonstrates a fluctuating, yet generally improving, trend over the five-year period. While consistently negative, the magnitude of the economic loss relative to revenue has decreased in recent years.
- Economic Profit Margin Trend
- In 2020, the economic profit margin was -57.86%. This represents the largest proportional economic loss relative to revenue during the observed period.
- A substantial improvement was noted in 2021, with the economic profit margin increasing to -25.45%. This indicates a reduced economic loss compared to the prior year, despite remaining negative.
- The margin deteriorated in 2022, reaching -42.53%, suggesting a renewed increase in the proportional economic loss.
- Further improvement occurred in 2023, with the economic profit margin reaching -23.56%. This continues the pattern of fluctuating, but generally improving, performance.
- The most recent year, 2024, shows the highest economic profit margin value of the period at -15.42%. This signifies the smallest proportional economic loss relative to revenue, indicating a positive trend in value creation, although still representing an overall economic loss.
The consistent negativity of the economic profit margin across all observed years indicates that the company’s returns are not exceeding its cost of capital. However, the decreasing magnitude of the negative margin suggests a gradual improvement in the efficiency of capital allocation and/or operational performance.
- Revenue Relationship
- Revenue increased consistently throughout the period, from US$2,886 million in 2020 to US$10,722 million in 2024. This revenue growth occurred concurrently with the fluctuations in the economic profit margin.
- The improvement in the economic profit margin in 2021 and 2023-2024, despite increasing revenue, suggests that the company is becoming more effective at converting revenue into economic profit, even if it is still not yet positive.
Continued monitoring of the economic profit margin is recommended to assess whether this improving trend persists and ultimately leads to positive economic profit.