Return on Capital (ROC)
Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.
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DoorDash, Inc. pages available for free this week:
- Income Statement
- Balance Sheet: Assets
- Analysis of Liquidity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value (EV)
- Net Profit Margin since 2020
- Operating Profit Margin since 2020
- Current Ratio since 2020
- Price to Earnings (P/E) since 2020
- Price to Book Value (P/BV) since 2020
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Return on Invested Capital (ROIC)
DoorDash, Inc., ROIC 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) | ||||||
| Net operating profit after taxes (NOPAT)1 | ||||||
| Invested capital2 | ||||||
| Performance Ratio | ||||||
| ROIC3 | ||||||
| Benchmarks | ||||||
| ROIC, Competitors4 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
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 Invested capital. See details »
3 2025 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
The analysis reveals a significant fluctuation in Return on Invested Capital (ROIC) over the five-year period. Initially, the metric demonstrates negative values, culminating in substantial improvements towards the end of the observed timeframe.
- Net Operating Profit After Taxes (NOPAT)
- NOPAT is negative for the first three years, reaching its lowest point in 2022. A substantial shift occurs in 2024, with NOPAT nearly reaching zero, followed by a positive value in 2025. This indicates a transition from consistent losses to profitability.
- Invested Capital
- Invested capital steadily increases from 2021 to 2025. The most significant increase is observed between 2024 and 2025, suggesting a period of substantial capital deployment. This growth in invested capital occurs alongside the shift in NOPAT from negative to positive.
- Return on Invested Capital (ROIC)
- ROIC begins at -12.92% in 2021 and declines to -26.69% in 2022, reflecting the larger NOPAT loss in that year. It partially recovers to -12.64% in 2023, but remains negative. A near-zero value of -0.09% is recorded in 2024, coinciding with the near-zero NOPAT. Finally, ROIC turns positive in 2025, reaching 6.94%, indicating a substantial improvement in capital efficiency as NOPAT becomes positive and invested capital continues to grow.
The trend suggests a period of initial underperformance followed by a turnaround. The increasing invested capital, coupled with the eventual positive NOPAT, drives the improvement in ROIC. The substantial increase in ROIC in 2025 is a key observation, indicating a potential shift towards more effective capital allocation and improved profitability.
Decomposition of ROIC
DoorDash, Inc., decomposition of ROIC
| ROIC | = | OPM1 | × | TO2 | × | 1 – CTR3 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2025 | = | × | × | ||||
| Dec 31, 2024 | = | × | × | ||||
| Dec 31, 2023 | = | × | × | ||||
| Dec 31, 2022 | = | × | × | ||||
| Dec 31, 2021 | = | × | × |
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 Operating profit margin (OPM). See calculations »
2 Turnover of capital (TO). See calculations »
3 Effective cash tax rate (CTR). See calculations »
The period under review demonstrates a significant evolution in financial performance, as evidenced by the decomposition of return on invested capital. Initially, the company experienced negative returns, which gradually improved, culminating in positive returns by the final year of the observed period.
- Operating Profit Margin (OPM)
- The operating profit margin exhibited substantial volatility. Beginning with a negative 8.16% in 2021, it deteriorated to -21.50% in 2022 before showing improvement to -7.58% in 2023. A near-zero margin of -0.01% was recorded in 2024, followed by a positive margin of 5.75% in 2025. This suggests a period of operational challenges followed by increasing efficiency and profitability.
- Turnover of Capital (TO)
- The turnover of capital fluctuated over the period. It decreased from 1.54 in 2021 to 1.24 in 2022, then increased to 1.65 in 2023 and 1.71 in 2024. A subsequent decline to 1.22 in 2025 is observed. This indicates varying levels of efficiency in utilizing capital to generate revenue.
- Effective Cash Tax Rate
- The effective cash tax rate remained consistently at 100% from 2021 to 2024, indicating full tax utilization during those years. A slight decrease to 99.05% in 2025 suggests a minor change in tax benefits or obligations.
- Return on Invested Capital (ROIC)
- The return on invested capital mirrored the trends in operating profit margin. Starting at -12.92% in 2021, it reached a low of -26.69% in 2022. Subsequent years showed improvement, with -12.64% in 2023, -0.09% in 2024, and a positive 6.94% in 2025. This progression demonstrates a clear trajectory towards improved capital allocation and profitability.
The interplay between operating profit margin and turnover of capital significantly influenced the ROIC. The initial negative ROIC was driven by a combination of low and negative operating margins and fluctuating capital turnover. The eventual positive ROIC in 2025 was primarily attributable to the substantial improvement in operating profit margin, despite a decrease in capital turnover during that year.
Operating Profit Margin (OPM)
DoorDash, Inc., OPM 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) | ||||||
| Net operating profit after taxes (NOPAT)1 | ||||||
| Add: Cash operating taxes2 | ||||||
| Net operating profit before taxes (NOPBT) | ||||||
| Revenue | ||||||
| Profitability Ratio | ||||||
| OPM3 | ||||||
| Benchmarks | ||||||
| OPM, Competitors4 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
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 Cash operating taxes. See details »
3 2025 Calculation
OPM = 100 × NOPBT ÷ Revenue
= 100 × ÷ =
4 Click competitor name to see calculations.
The operating profit margin exhibits a volatile trajectory over the observed period. Initially negative, it demonstrates substantial fluctuation before ultimately achieving positive territory.
- Operating Profit Margin (OPM) - Trend Analysis
- In 2021, the operating profit margin stood at -8.16%. This figure deteriorated significantly in 2022, reaching -21.50%, indicating a substantial decline in profitability relative to revenue. A partial recovery was noted in 2023, with the OPM improving to -7.58%, though remaining negative. The margin experienced a near-zero value in 2024 at -0.01%, suggesting a point of near-breakeven operation. Finally, 2025 witnessed a marked positive shift, with the OPM reaching 5.75%, signifying a transition to operating profitability.
The net operating profit before taxes mirrors the OPM trend. Negative values in 2021, 2022, and 2023 correspond with the negative operating profit margins. The near-zero NOPBT in 2024 aligns with the near-zero OPM, and the positive NOPBT in 2025 reflects the positive OPM achieved in that year.
- Revenue and OPM Relationship
- Revenue consistently increased throughout the period, rising from US$4,888 million in 2021 to US$13,717 million in 2025. However, revenue growth alone did not translate into immediate profitability. The substantial increase in revenue between 2021 and 2025 was accompanied by a delayed improvement in the operating profit margin, indicating that cost management and operational efficiency were key factors in achieving profitability in 2025.
The progression from substantial negative margins to positive profitability suggests a potential turning point in the company’s operational performance. The improvement in OPM in the later years, despite continued revenue growth, indicates a strengthening ability to control costs and generate profits from core operations.
Turnover of Capital (TO)
DoorDash, Inc., TO calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Revenue | ||||||
| Invested capital1 | ||||||
| Efficiency Ratio | ||||||
| TO2 | ||||||
| Benchmarks | ||||||
| TO, Competitors3 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
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 Invested capital. See details »
2 2025 Calculation
TO = Revenue ÷ Invested capital
= ÷ =
3 Click competitor name to see calculations.
The period under review demonstrates fluctuating performance in the turnover of capital. Revenue consistently increased year-over-year, while invested capital exhibited a more variable pattern. This interplay significantly impacted the turnover ratio.
- Revenue Trend
- Revenue experienced consistent growth throughout the observed period, increasing from US$4,888 million in 2021 to US$13,717 million in 2025. This represents a substantial overall increase, indicating expanding business activity.
- Invested Capital Trend
- Invested capital increased significantly from 2021 to 2022, rising from US$3,179 million to US$5,320 million. Following this increase, it decreased slightly in 2023 to US$5,237 million before increasing again in 2024 to US$6,261 million. A substantial increase is observed in 2025, reaching US$11,248 million. This suggests periods of capital investment followed by stabilization or minor reductions, and then a significant reinvestment towards the end of the period.
- Turnover of Capital (TO) Analysis
- The turnover of capital ratio began at 1.54 in 2021, decreased to 1.24 in 2022, and then increased to 1.65 in 2023. A further increase to 1.71 was noted in 2024, before declining to 1.22 in 2025. The initial decrease in 2022 coincided with a larger increase in invested capital relative to revenue growth. The subsequent increases in 2023 and 2024 suggest improved efficiency in utilizing capital to generate revenue. The decline in 2025, despite continued revenue growth, is attributable to a substantial increase in invested capital.
The fluctuations in the turnover of capital ratio indicate a dynamic relationship between revenue generation and capital investment. While revenue consistently grew, the efficiency with which capital was used to generate that revenue varied, influenced by the timing and magnitude of capital investments.
Effective Cash Tax Rate (CTR)
DoorDash, Inc., CTR calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net operating profit after taxes (NOPAT)1 | ||||||
| Add: Cash operating taxes2 | ||||||
| Net operating profit before taxes (NOPBT) | ||||||
| Tax Rate | ||||||
| CTR3 | ||||||
| Benchmarks | ||||||
| CTR, Competitors4 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
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 Cash operating taxes. See details »
3 2025 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × ÷ =
4 Click competitor name to see calculations.
The relationship between cash operating taxes and net operating profit before taxes exhibits significant fluctuation over the observed period. Cash operating taxes initially decreased from 2021 to 2022, then increased modestly in 2023, decreased again in 2024, and increased once more in 2025. Net operating profit before taxes demonstrates a more dramatic pattern, moving from a substantial loss in 2021 to a larger loss in 2022, a reduced loss in 2023, a near-zero result in 2024, and finally, a profit in 2025.
- Cash Operating Taxes
- Cash operating taxes began at US$12 million in 2021, declining to US$5 million in 2022. A subsequent increase to US$7 million occurred in 2023, followed by a decrease to US$4 million in 2024, and a final rise to US$7 million in 2025. This suggests volatility in the company’s tax payments, potentially linked to changes in profitability and applicable tax regulations.
- Net Operating Profit Before Taxes (NOPBT)
- Net operating profit before taxes was negative throughout most of the period. It stood at negative US$399 million in 2021, worsening to negative US$1,415 million in 2022. The loss narrowed to negative US$655 million in 2023, and nearly reached breakeven at negative US$2 million in 2024. Finally, the company reported a profit of US$788 million in 2025, indicating a substantial improvement in underlying operational performance.
- Effective Cash Tax Rate (CTR)
- The effective cash tax rate is only available for 2025, registering at 0.95%. Given the prior years of losses, the absence of a CTR calculation is logical. The 2025 rate suggests a relatively low tax burden on the reported profit, potentially due to tax loss carryforwards or other tax planning strategies. Further investigation would be needed to understand the specific drivers of this rate.
The shift from consistent losses to profitability in 2025 is a key observation. The corresponding increase in cash operating taxes and the emergence of a positive effective cash tax rate highlight a change in the company’s financial position. The fluctuations in cash taxes prior to 2025 likely reflect the impact of losses and potentially, the utilization of tax credits or deductions.