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 – 25.88% × 11,248 = -2,131
The financial trajectory between 2021 and 2025 indicates a transition from substantial operational losses toward positive net operating profit after taxes (NOPAT), although economic profit remained consistently negative throughout the period. While operational efficiency improved, the simultaneous expansion of the capital base prevented the realization of economic value added.
- Net Operating Profit After Taxes (NOPAT)
- A significant widening of operational losses occurred in 2022, reaching negative 1,420 million US$. This was followed by a consistent recovery trend, with NOPAT improving to negative 662 million US$ in 2023 and reaching a near break-even point of negative 5 million US$ in 2024. By 2025, the company achieved positive operational profitability, reporting 781 million US$.
- Invested Capital
- Invested capital demonstrates a sustained upward trend, growing from 3,179 million US$ in 2021 to 11,248 million US$ by 2025. The most pronounced increase occurred between 2024 and 2025, where the invested capital base grew by approximately 79%, suggesting aggressive expansion or significant asset acquisition.
- Cost of Capital
- The cost of capital remained relatively stable and high over the five-year horizon, fluctuating within a narrow range between 25.88% and 26.90%. This high percentage establishes a steep threshold for the return required to generate positive economic profit.
- Economic Profit
- Economic profit remained in negative territory for the entire duration analyzed, indicating that the company did not generate returns sufficient to cover its cost of capital. After peaking at a loss of 2,830 million US$ in 2022, the economic deficit narrowed to 1,690 million US$ by 2024. However, in 2025, despite the shift to a positive NOPAT, economic profit declined further to negative 2,131 million US$. This outcome is attributed to the sharp increase in invested capital, which raised the total capital charge beyond the gains achieved in operational profit.
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Net Operating Profit after Taxes (NOPAT)
DoorDash, Inc., NOPAT calculation
US$ 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$10,033 million in 2025. This indicates a strengthening equity position, although the proportional contribution to invested capital changes with the debt increase.
The composition of invested capital shifted notably in 2025. While stockholders’ equity continued to grow, the substantial increase in debt and leases contributed to the overall accelerated growth in invested capital. This change in capital structure warrants further investigation to understand the underlying strategic decisions and potential financial implications.
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Cost of Capital
DoorDash, Inc., cost of capital calculations
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 75,321) | 75,321) | ÷ | 78,787) | = | 0.96 | 0.96 | × | 27.03% | = | 25.84% | ||
| 0% Convertible Senior Notes due 20303 | 2,900) | 2,900) | ÷ | 78,787) | = | 0.04 | 0.04 | × | 0.22% × (1 – 21.00%) | = | 0.01% | ||
| Operating lease liability4 | 566) | 566) | ÷ | 78,787) | = | 0.01 | 0.01 | × | 6.55% × (1 – 21.00%) | = | 0.04% | ||
| Total: | 78,787) | 1.00 | 25.88% | ||||||||||
Based on: 10-K (reporting date: 2025-12-31).
1 US$ 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 | × | 27.03% | = | 26.87% | ||
| 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 | 26.90% | ||||||||||
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 | × | 27.03% | = | 26.73% | ||
| 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 | 26.79% | ||||||||||
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 | × | 27.03% | = | 26.39% | ||
| 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 | 26.51% | ||||||||||
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 | × | 27.03% | = | 26.73% | ||
| 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 | 26.79% | ||||||||||
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 | (2,131) | (1,690) | (2,065) | (2,830) | (1,262) | |
| Invested capital2 | 11,248) | 6,261) | 5,237) | 5,320) | 3,179) | |
| Performance Ratio | ||||||
| Economic spread ratio3 | -18.94% | -26.98% | -39.42% | -53.20% | -39.71% | |
| Benchmarks | ||||||
| Economic Spread Ratio, Competitors4 | ||||||
| Airbnb Inc. | 24.30% | 24.12% | 9.38% | 11.02% | -11.09% | |
| Booking Holdings Inc. | 24.25% | 29.11% | 14.66% | 3.80% | -13.64% | |
| Chipotle Mexican Grill Inc. | 9.14% | 8.60% | 7.02% | 2.82% | -1.67% | |
| McDonald’s Corp. | 9.05% | 8.56% | 8.64% | 5.84% | 8.26% | |
| Starbucks Corp. | -4.64% | 3.51% | 5.21% | 2.81% | 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 × -2,131 ÷ 11,248 = -18.94%
4 Click competitor name to see calculations.
The analysis of economic value generation from 2021 to 2025 reveals a persistent state of negative economic profit, indicating that returns have consistently remained below the cost of capital. However, a notable trend of convergence is observed in the economic spread ratio, suggesting an improvement in capital efficiency despite the continued absence of positive economic value creation.
- Economic Profit Trends
- Economic profit experienced a significant decline in 2022, reaching a low of -2,830 million USD. A period of recovery followed through 2024, during which losses narrowed to -1,690 million USD, before a subsequent increase in losses to -2,131 million USD was recorded in 2025.
- Invested Capital Expansion
- Invested capital demonstrates a strong and consistent upward trajectory, increasing from 3,179 million USD in 2021 to 11,248 million USD by 2025. A particularly substantial acceleration in capital deployment is evident between 2024 and 2025, where invested capital nearly doubled.
- Economic Spread Ratio Analysis
- The economic spread ratio shows a steady recovery following a trough of -53.20% in 2022. By 2025, the ratio improved to -18.94%, representing the most favorable position within the analyzed timeframe. This trend indicates that the gap between the return on invested capital and the cost of capital is narrowing, achieving a more efficient utilization of capital even as the total investment base expanded aggressively.
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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 | (2,131) | (1,690) | (2,065) | (2,830) | (1,262) | |
| Revenue | 13,717) | 10,722) | 8,635) | 6,583) | 4,888) | |
| Performance Ratio | ||||||
| Economic profit margin2 | -15.53% | -15.76% | -23.91% | -42.99% | -25.83% | |
| Benchmarks | ||||||
| Economic Profit Margin, Competitors3 | ||||||
| Airbnb Inc. | 11.32% | 13.10% | 5.46% | 8.75% | -10.03% | |
| Booking Holdings Inc. | 11.63% | 15.91% | 7.83% | 3.04% | -18.68% | |
| Chipotle Mexican Grill Inc. | 5.59% | 5.17% | 4.26% | 1.75% | -1.21% | |
| McDonald’s Corp. | 18.03% | 16.40% | 16.95% | 11.43% | 16.97% | |
| Starbucks Corp. | -3.01% | 2.29% | 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 × -2,131 ÷ 13,717 = -15.53%
3 Click competitor name to see calculations.
The financial trajectory from 2021 to 2025 is characterized by aggressive top-line expansion coupled with persistent negative economic profit. While the organization has not yet achieved a positive economic value added, there is a clear trend of margin optimization as revenue growth begins to outpace the growth of economic losses.
- Revenue Growth Trajectory
- A consistent and strong upward trend in revenue is observed, rising from US$ 4,888 million in 2021 to US$ 13,717 million in 2025. This represents a steady scaling of operations and market penetration over the five-year period.
- Economic Profit Performance
- Economic profit remained negative throughout the entire period, indicating that returns have not yet exceeded the company's cost of capital. A significant widening of the deficit occurred in 2022, reaching US$ -2,830 million. This was followed by a period of recovery through 2024, where the deficit narrowed to US$ -1,690 million, before increasing again to US$ -2,131 million in 2025.
- Economic Profit Margin Evolution
- The economic profit margin exhibited substantial volatility early in the period, deteriorating from -25.83% in 2021 to a trough of -42.99% in 2022. Following this decline, a sustained recovery trend is evident; the margin improved to -23.91% in 2023 and continued to narrow to -15.76% in 2024 and -15.53% in 2025. This stabilization suggests an improvement in operational efficiency and a reduction in the economic loss generated per dollar of revenue.
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