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
- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Selected Financial Data since 2020
- Net Profit Margin since 2020
- Total Asset Turnover since 2020
- Price to Earnings (P/E) since 2020
- Price to Operating Profit (P/OP) 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 data reveals several notable trends over the five-year period under consideration. There are significant fluctuations in key profitability metrics and changes in invested capital that influence overall economic performance.
- Net Operating Profit After Taxes (NOPAT)
- The NOPAT values indicate persistent losses throughout the entire period. Although losses slightly improved from -414 million US dollars in 2020 to -411 million in 2021, they then worsened sharply to -1420 million in 2022. Subsequently, the losses diminished substantially to -662 million in 2023 and nearly broke even at -5 million in 2024. This pattern suggests a substantial initial deterioration in operating profitability, followed by a significant recovery in recent years.
- Cost of Capital
- The cost of capital remained relatively stable, fluctuating narrowly around 22%, from 22% in 2020 and 2021 to a marginal decrease to 21.78% in 2022, then slightly increasing again to approximately 22% in 2023 and 2024. This stability implies consistent expectations regarding the company's required return on invested capital or risk profile during this period.
- Invested Capital
- Invested capital showed volatility with a notable dip from 4792 million US dollars in 2020 to 3179 million in 2021, followed by a strong rebound to 5320 million in 2022. It then modestly declined to 5237 million in 2023 before rising substantially to 6261 million in 2024. This trend indicates periods of both reduction and expansion in capital employed, potentially reflecting strategic investment decisions or asset reallocation.
- Economic Profit
- Economic profit, which accounts for the cost of capital and invested capital measures, was negative throughout the analyzed period, highlighting consistent value destruction from an economic perspective. There was an improvement from a loss of -1468 million US dollars in 2020 to -1110 million in 2021. However, the figure worsened sharply in 2022 to -2579 million before improving to -1814 million in 2023 and further to -1388 million in 2024. Although economic losses decreased after 2022, they remain substantial, indicating ongoing challenges in generating returns above the company's cost of capital.
Overall, the data demonstrates a company facing significant operating losses and negative economic profits over the entire period, despite some recovery in the last two years. The invested capital shows variability, reflecting dynamic capital deployment strategies. The cost of capital remains steady, underscoring consistent investor return requirements. This combination of results suggests continued focus is necessary to convert improving operating results into positive economic value creation.
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.
- Economic Profit
- The economic profit has exhibited significant fluctuations over the five-year period. Starting at a negative value of -1468 million US dollars in 2020, there was an improvement in 2021 to -1110 million US dollars. However, this was followed by a marked deterioration in 2022, reaching -2579 million US dollars. Subsequently, economic profit improved again in 2023 and 2024, with values of -1814 million and -1388 million US dollars respectively, though it remained negative throughout the period. This indicates persistent economic losses despite some recovery in recent years.
- Invested Capital
- The invested capital shows a generally increasing trend over the period. It began at 4792 million US dollars in 2020, dropped to 3179 million US dollars in 2021, then increased sharply to 5320 million in 2022. After a slight decline to 5237 million in 2023, invested capital rose again to 6261 million US dollars in 2024. This upward trajectory suggests ongoing investment and growth in the company’s capital base, albeit with some short-term variability.
- Economic Spread Ratio
- The economic spread ratio, which measures the difference between the return on invested capital and the cost of capital, consistently remained negative throughout the period. It started at -30.64% in 2020, deteriorated further to -34.92% in 2021, and reached its lowest point at -48.47% in 2022. Subsequently, there was an improvement to -34.64% in 2023 and further to -22.17% in 2024 but without becoming positive. The negative spread indicates that the company has been generating returns below its capital costs, which corresponds with the sustained negative economic profit observed.
- Overall Insights
- Over the period analyzed, the company consistently operated at an economic loss, despite increased investment levels. The negative economic spread ratio indicates inefficiencies in generating returns above the cost of invested capital. Although there were signs of improvement in economic profit and economic spread in the last two years, the financial performance remained below breakeven. The rising invested capital suggests confidence in future growth, but the company must focus on improving its returns to achieve positive economic profits and enhance value creation moving forward.
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 financial data reveals varying trends across the analyzed periods, reflecting changes in profitability and revenue performance. The revenue demonstrated a consistent upward trajectory, increasing steadily year over year. Starting at $2,886 million in 2020, revenue rose to $4,888 million in 2021, and continued growing to $6,583 million in 2022. This positive momentum persisted with revenues reaching $8,635 million in 2023 and $10,722 million in 2024, indicating robust sales growth and potential market expansion.
Despite the revenue growth, economic profit exhibited a fluctuating pattern, remaining negative throughout all periods, which suggests ongoing challenges in achieving profitability beyond accounting measures. The economic profit was -$1,468 million in 2020, improved to -$1,110 million in 2021, but then deteriorated significantly to -$2,579 million in 2022. Following this, there was partial recovery with economic profit improving to -$1,814 million in 2023 and further to -$1,388 million in 2024. These fluctuations imply variability in cost control or capital efficiency during these years.
In line with economic profit trends, the economic profit margin also remained negative but showed improvement after 2022. From -50.88% in 2020, it improved to -22.71% in 2021, worsened to -39.17% in 2022, then improved again to -21.01% in 2023, and further to -12.95% in 2024. The pattern indicates the company’s ability to generate greater revenue relative to the economic costs incurred has been inconsistent but generally trending towards reduced losses relative to revenue in the most recent years.
- Summary of key trends
- Revenue growth has been consistently strong, showing significant increases each year.
- Economic profit remains negative, indicating persistent excess of costs or capital charges over operating returns.
- Despite volatility, economic profit margin is improving, suggesting enhanced efficiency or cost management efforts.
- The substantial drop in economic profit and margin in 2022 signals a challenging year possibly due to increased expenses or capital costs.
- The trend after 2022 points to recovery with reduction in economic losses as a proportion of revenue.