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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DoorDash, Inc. pages available for free this week:
- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Balance Sheet: Assets
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Geographic Areas
- Enterprise Value to EBITDA (EV/EBITDA)
- Present Value of Free Cash Flow to Equity (FCFE)
- Operating Profit Margin since 2020
- Current Ratio since 2020
- Price to Book Value (P/BV) 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
= – × =
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 financial data reveals several notable trends over the five-year period under review.
- Economic Profit
- The economic profit displays a negative trajectory throughout the entire period, indicating consistent economic losses. Initially, there is an improvement from -1470 million USD in 2020 to -1111 million USD in 2021. However, this trend reverses substantially in 2022, with economic profit deteriorating sharply to -2580 million USD. Subsequently, economic profit improves again in 2023 and 2024, reaching -1815 million USD and -1390 million USD respectively, though it remains firmly negative. These fluctuations suggest volatility in the company’s ability to generate returns above its cost of capital.
- Invested Capital
- Invested capital experiences significant instability over the period. Starting at 4792 million USD in 2020, it declines to 3179 million USD in 2021, indicating divestment or asset reduction activities. From 2021 onwards, there is a substantial increase, peaking at 6261 million USD in 2024 after rising to 5320 million USD in 2022 and maintaining a high level in 2023. This trend reflects a strategic expansion or reinvestment in capital assets following the initial contraction.
- Economic Spread Ratio
- The economic spread ratio remains negative across all years, further confirming ongoing value destruction relative to the invested capital. It begins at -30.67% in 2020, worsens to -34.95% in 2021, and reaches its most adverse point at -48.5% in 2022. Thereafter, the spread improves significantly to -34.67% in 2023 and shows further recovery to -22.2% in 2024. This pattern indicates that although the company continues to operate below its cost of capital, it is making progress toward narrowing the gap.
Overall, the data illustrates a company facing challenges in generating positive economic profit and creating value above its cost of capital. Despite increased capital investment in later years, and some recovery in economic profit and spread ratio, the persistent negative values highlight sustained profitability and efficiency issues. Monitoring the continuation of recent improvements will be critical for assessing future financial viability.
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 company's revenue has demonstrated a strong upward trend over the five-year period. Starting at $2,886 million in 2020, revenue increased consistently each year, reaching $10,722 million by 2024. This represents a nearly fourfold increase, indicating robust growth in sales or service delivery.
Economic profit, however, exhibits a different pattern. Although the absolute economic profit values are negative throughout the period, indicating losses, fluctuations can be observed. Economic profit improved from -$1,470 million in 2020 to -$1,111 million in 2021, suggesting some reduction in losses. Yet in 2022, there was a significant deterioration to -$2,580 million, followed by partial recoveries in 2023 and 2024 with economic losses declining to -$1,815 million and -$1,390 million respectively.
The economic profit margin, which measures economic profit as a percentage of revenue, confirms these trends. The margin improved markedly from -50.93% in 2020 to -22.73% in 2021. A sharp decline to -39.20% occurred in 2022, mirroring the increase in absolute losses for the year. Improvement resumed over the last two years, reaching -12.96% in 2024. This indicates the company is reducing its economic losses relative to its growing revenue, suggesting enhanced operational efficiency or cost management.
- Summary of Trends
- The company experienced significant revenue growth each year from 2020 to 2024.
- Despite persistent economic losses, the company saw an overall reduction in loss magnitude after a peak setback in 2022.
- The economic profit margin improved in line with reductions in economic profit losses, although it remains negative, indicating that the company is not yet generating true economic profits.
- The period from 2022 onward marks a recovery phase in economic profitability metrics after notable deterioration in 2022.