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: 2025-12-31), 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).
1 NOPAT. See details »
2 Cost of capital. See details »
3 Invested capital. See details »
4 2025 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= 781 – 25.96% × 11,248 = -2,139
The financial trajectory between 2021 and 2025 is characterized by a transition toward operating profitability, contrasted by a persistent failure to generate positive economic value. While operating results have improved significantly, the scale of invested capital and the high cost of capital continue to result in substantial economic losses.
- Net Operating Profit After Taxes (NOPAT)
- A volatile but ultimately upward trend is observed in NOPAT. Following a sharp decline to negative 1,420 million US$ in 2022, the figure improved consistently, reaching a near-breakeven point in 2024 and achieving a positive result of 781 million US$ by 2025. This indicates a successful shift in the underlying operational efficiency and a transition toward a profitable operating model.
- Invested Capital and Cost of Capital
- Invested capital has expanded aggressively, growing from 3,179 million US$ in 2021 to 11,248 million US$ in 2025, with a particularly sharp increase occurring in the final year. Concurrently, the cost of capital has remained remarkably stable, fluctuating within a narrow range between 25.96% and 26.98%. The combination of a high, stagnant cost of capital and rapidly increasing invested capital creates a high financial hurdle for the organization to overcome.
- Economic Profit and Value Creation
- Economic profit has remained negative throughout the entire analyzed period, signaling that the business has not yet generated returns sufficient to cover its cost of capital. The economic profit reached its lowest point in 2022 at negative 2,834 million US$. Although there was a period of recovery between 2023 and 2024, the economic profit declined again to negative 2,139 million US$ in 2025. This suggests that the increase in invested capital in 2025 outweighed the gains achieved in NOPAT, leading to further economic value destruction despite the achievement of operating profitability.
In summary, the analysis reveals a divergence between accounting profitability and economic value. The company has successfully moved from operating losses to an operating profit, but the aggressive expansion of the capital base, coupled with a high cost of capital, prevents the realization of positive economic profit.
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Net Operating Profit after Taxes (NOPAT)
DoorDash, Inc., NOPAT calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 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).
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 2025 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 566 × 6.55% = 37
5 2025 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= 37 × 21.00% = 8
6 Addition of after taxes interest expense to net income (loss) attributable to DoorDash, Inc. common stockholders.
7 2025 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= 211 × 21.00% = 44
8 Elimination of after taxes investment income.
The financial performance, as indicated by Net Income and Net Operating Profit After Taxes (NOPAT), demonstrates a period of initial losses followed by a trajectory towards profitability. A significant shift occurs between the 2022 and 2023 periods, continuing into the subsequent years.
- NOPAT Trend
- NOPAT exhibited substantial negative values from 2021 through 2023, registering at -411, -1,420, and -662 million US dollars respectively. This indicates that, during these years, the company’s operating profits, after accounting for taxes, were insufficient to cover the cost of capital employed. However, a marked improvement is observed in 2024, with NOPAT nearing breakeven at -5 million US dollars. This trend culminates in a positive NOPAT of 781 million US dollars in 2025, signifying a substantial increase in value creation.
The magnitude of the negative NOPAT in 2022 is considerably larger than in 2021 and 2023, suggesting a period of heightened operational challenges or increased investment during that year. The progression from negative to positive NOPAT over the observed period suggests improving operational efficiency, successful scaling of operations, or a combination of both. The substantial positive NOPAT in 2025 represents a significant turnaround and potential for future value generation.
- Relationship between Net Income and NOPAT
- The patterns in Net Income attributable to DoorDash, Inc. common stockholders closely mirror those of NOPAT. Both metrics are negative for 2021, 2022, and 2023, and both turn positive in 2024 and 2025. While the absolute values differ, the directional consistency suggests that changes in operating profitability are a primary driver of overall net income. The difference between the two metrics likely reflects items not included in NOPAT, such as financing costs or non-operating income/expenses.
The transition to positive NOPAT and Net Income in the later years of the period suggests a strengthening financial position and improved ability to generate returns for investors.
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Cash Operating Taxes
DoorDash, Inc., cash operating taxes calculation
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 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).
The provision for (benefit from) income taxes exhibited significant volatility over the observed period. Beginning at US$5 million in 2021, it decreased substantially to a benefit of US$31 million in 2022, before returning to a provision of US$31 million in 2023. This was followed by an increase to US$39 million in 2024, and a subsequent decline to US$7 million in 2025.
Cash operating taxes demonstrated a generally decreasing trend, although with fluctuations. Starting at US$12 million in 2021, these taxes decreased to US$5 million in 2022, and further to US$7 million in 2023. A further decrease to US$4 million occurred in 2024, before stabilizing at US$7 million in 2025.
- Relationship between Provision for Income Taxes and Cash Operating Taxes
- A divergence is apparent between the provision for income taxes and cash operating taxes. In 2022, a significant benefit from income taxes was recorded, while cash operating taxes remained positive, albeit lower than in the prior year. This suggests the presence of non-cash tax expenses or deferred tax assets impacting the provision. The difference between the two metrics narrowed in subsequent years, but remained notable, indicating ongoing timing differences or other factors influencing the effective tax rate.
- Trend Analysis - Provision for Income Taxes
- The provision for income taxes displayed a lack of consistent direction. The initial decrease in 2022, resulting in a benefit, was followed by a return to positive provisions in subsequent years. The peak provision in 2024, followed by a decline in 2025, suggests potential impacts from changes in taxable income or applicable tax laws.
- Trend Analysis - Cash Operating Taxes
- Cash operating taxes generally trended downward from 2021 to 2024, indicating a reduction in actual cash outflows related to income taxes. The stabilization at US$7 million in 2025 suggests a potential floor to this decline, or a leveling off of taxable income.
The fluctuations in both metrics warrant further investigation to understand the underlying drivers, including changes in profitability, tax credits, and deferred tax positions. The difference between the provision and cash taxes should be examined to assess the quality of earnings and potential impacts on future cash flows.
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Invested Capital
DoorDash, Inc., invested capital calculation (financing approach)
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 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).
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 reported invested capital demonstrates a generally increasing trend over the observed period. However, the rate of increase fluctuates significantly, with a substantial jump occurring between 2024 and 2025. A detailed examination of the components contributing to invested capital reveals further insights.
- Total Invested Capital
- Invested capital increased from US$3,179 million in 2021 to US$5,320 million in 2022, representing a significant expansion. Growth slowed in 2023, with a slight decrease to US$5,237 million. Further growth was observed in 2024, reaching US$6,261 million, before accelerating dramatically to US$11,248 million in 2025. This final increase suggests a considerable shift in capital allocation or financing activities.
- Debt & Leases
- Total reported debt and leases exhibited moderate growth from 2021 to 2023, increasing from US$399 million to US$522 million. Growth remained relatively stable in 2024 at US$536 million. However, a substantial increase is noted in 2025, reaching US$3,290 million. This suggests a significant reliance on debt financing in the latter period.
- Stockholders’ Equity
- Stockholders’ equity consistently increased throughout the period. From US$4,667 million in 2021, it rose to US$6,754 million in 2022, US$6,806 million in 2023, US$7,803 million in 2024, and finally to US$10,033 million in 2025. This indicates a strengthening equity position, although the proportional contribution to invested capital changes with the debt increase.
The composition of invested capital shifted notably in 2025. While stockholders’ equity continued to grow, the substantial increase in debt and leases contributed to the overall accelerated growth in invested capital. This change in capital structure warrants further investigation to understand the underlying strategic decisions and potential financial implications.
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Cost of Capital
DoorDash, Inc., cost of capital calculations
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 75,321) | 75,321) | ÷ | 78,787) | = | 0.96 | 0.96 | × | 27.11% | = | 25.91% | ||
| 0% Convertible Senior Notes due 20303 | 2,900) | 2,900) | ÷ | 78,787) | = | 0.04 | 0.04 | × | 0.22% × (1 – 21.00%) | = | 0.01% | ||
| Operating lease liability4 | 566) | 566) | ÷ | 78,787) | = | 0.01 | 0.01 | × | 6.55% × (1 – 21.00%) | = | 0.04% | ||
| Total: | 78,787) | 1.00 | 25.96% | ||||||||||
Based on: 10-K (reporting date: 2025-12-31).
1 US$ in millions
2 Equity. See details »
3 0% Convertible Senior Notes due 2030. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 89,640) | 89,640) | ÷ | 90,176) | = | 0.99 | 0.99 | × | 27.11% | = | 26.94% | ||
| 0% Convertible Senior Notes due 20303 | —) | —) | ÷ | 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 | 26.98% | ||||||||||
Based on: 10-K (reporting date: 2024-12-31).
1 US$ in millions
2 Equity. See details »
3 0% Convertible Senior Notes due 2030. 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 | × | 27.11% | = | 26.81% | ||
| 0% Convertible Senior Notes due 20303 | —) | —) | ÷ | 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 | 26.86% | ||||||||||
Based on: 10-K (reporting date: 2023-12-31).
1 US$ in millions
2 Equity. See details »
3 0% Convertible Senior Notes due 2030. 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 | × | 27.11% | = | 26.47% | ||
| 0% Convertible Senior Notes due 20303 | —) | —) | ÷ | 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 | 26.59% | ||||||||||
Based on: 10-K (reporting date: 2022-12-31).
1 US$ in millions
2 Equity. See details »
3 0% Convertible Senior Notes due 2030. 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 | × | 27.11% | = | 26.81% | ||
| 0% Convertible Senior Notes due 20303 | —) | —) | ÷ | 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 | 26.87% | ||||||||||
Based on: 10-K (reporting date: 2021-12-31).
1 US$ in millions
2 Equity. See details »
3 0% Convertible Senior Notes due 2030. See details »
4 Operating lease liability. See details »
Economic Spread Ratio
DoorDash, Inc., economic spread ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Economic profit1 | (2,139) | (1,694) | (2,069) | (2,834) | (1,265) | |
| Invested capital2 | 11,248) | 6,261) | 5,237) | 5,320) | 3,179) | |
| Performance Ratio | ||||||
| Economic spread ratio3 | -19.02% | -27.06% | -39.50% | -53.28% | -39.79% | |
| Benchmarks | ||||||
| Economic Spread Ratio, Competitors4 | ||||||
| Airbnb Inc. | 24.28% | 24.10% | 9.37% | 11.00% | -11.10% | |
| Booking Holdings Inc. | 24.23% | 29.09% | 14.64% | 3.79% | -13.66% | |
| Chipotle Mexican Grill Inc. | 9.14% | 8.60% | 7.02% | 2.82% | -1.67% | |
| McDonald’s Corp. | 9.08% | 8.60% | 8.67% | 5.87% | 8.30% | |
| Starbucks Corp. | -4.65% | 3.51% | 5.21% | 2.80% | 4.06% | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Economic profit. See details »
2 Invested capital. See details »
3 2025 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × -2,139 ÷ 11,248 = -19.02%
4 Click competitor name to see calculations.
The analysis of the economic value added indicators reveals a persistent state of value destruction, characterized by negative economic profit across the five-year period. Despite this, a progressive improvement in the economic spread ratio indicates a narrowing gap between the return on capital and the cost of capital.
- Economic Profit Trends
- Economic profit remained negative from 2021 through 2025, signaling that the company failed to generate returns exceeding its cost of capital. A notable peak in losses occurred in 2022, with economic profit dropping to -2,834 million US$. A subsequent recovery trend was observed through 2024, where losses narrowed to -1,694 million US$, before an increase in the loss to -2,139 million US$ was recorded in 2025.
- Invested Capital Expansion
- Invested capital exhibited a strong growth trajectory, increasing from 3,179 million US$ in 2021 to 11,248 million US$ in 2025. The most significant expansion occurred between 2024 and 2025, during which the invested capital base nearly doubled. This suggests a substantial increase in the resources deployed to support the company's operations.
- Economic Spread Ratio Analysis
- The economic spread ratio reached its lowest point in 2022 at -53.28%, coinciding with the period of maximum economic loss. From that point onward, a consistent upward trend is observed, with the ratio improving to -39.50% in 2023, -27.06% in 2024, and reaching -19.02% by 2025. This steady improvement implies that while the company remains in a state of negative economic value added, the efficiency of the capital deployment is trending toward a break-even point.
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Economic Profit Margin
DoorDash, Inc., economic profit margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Economic profit1 | (2,139) | (1,694) | (2,069) | (2,834) | (1,265) | |
| Revenue | 13,717) | 10,722) | 8,635) | 6,583) | 4,888) | |
| Performance Ratio | ||||||
| Economic profit margin2 | -15.59% | -15.80% | -23.96% | -43.06% | -25.88% | |
| Benchmarks | ||||||
| Economic Profit Margin, Competitors3 | ||||||
| Airbnb Inc. | 11.31% | 13.09% | 5.45% | 8.74% | -10.04% | |
| Booking Holdings Inc. | 11.62% | 15.90% | 7.82% | 3.02% | -18.71% | |
| Chipotle Mexican Grill Inc. | 5.59% | 5.18% | 4.26% | 1.76% | -1.21% | |
| McDonald’s Corp. | 18.11% | 16.47% | 17.02% | 11.51% | 17.04% | |
| Starbucks Corp. | -3.01% | 2.28% | 3.22% | 1.79% | 3.31% | |
Based on: 10-K (reporting date: 2025-12-31), 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).
1 Economic profit. See details »
2 2025 Calculation
Economic profit margin = 100 × Economic profit ÷ Revenue
= 100 × -2,139 ÷ 13,717 = -15.59%
3 Click competitor name to see calculations.
The financial trajectory from 2021 to 2025 is characterized by aggressive revenue expansion alongside persistent negative economic profit, indicating that the company has not yet generated returns sufficient to cover its cost of capital.
- Revenue Growth
- A consistent and strong upward trend is observed, with revenue increasing from 4,888 million US$ in 2021 to 13,717 million US$ by 2025. This steady growth reflects a significant expansion in market scale over the five-year period.
- Economic Profit Trends
- Economic profit remained in negative territory throughout the entire period. A substantial deterioration occurred in 2022, where losses widened to 2,834 million US$. A period of recovery followed, with losses narrowing to 1,694 million US$ by 2024, before a subsequent increase in economic loss to 2,139 million US$ was recorded in 2025.
- Economic Profit Margin Analysis
- The economic profit margin exhibited a volatile but generally improving trend after a sharp decline in 2022. The margin reached a trough of -43.06% in 2022 before recovering to -23.96% in 2023 and -15.80% in 2024. By 2025, the margin stabilized at -15.59%. The fact that the margin improved slightly in 2025 despite an increase in absolute economic loss indicates that revenue growth is outpacing the growth of the economic deficit.
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