DoorDash, Inc. (NASDAQ:DASH)

The financial data reveals several notable trends over the five-year period ending December 31, 2024. The net operating profit after taxes (NOPAT) has been consistently negative across all years, indicating ongoing operational losses. The magnitude of these losses peaked in 2022, with a significant downturn to -1420 million USD, before improving somewhat in the subsequent years, reaching nearly break-even at -5 million USD in 2024.

Invested capital shows variability but an overall upward trend. After a decline from 4792 million USD in 2020 to 3179 million USD in 2021, it rebounded strongly to 5320 million USD in 2022 and has continued to increase, reaching 6261 million USD by 2024. This increase suggests continued capital deployment into the company's operations despite the reported losses.

Return on invested capital (ROIC) has been negative throughout the period, mirroring the negative NOPAT figures. The lowest ROIC occurred in 2022 at -26.69%, demonstrating substantial inefficiency in generating returns on the invested capital during that year. However, improvement is evident in subsequent years, with ROIC rising to -0.09% by 2024, approaching a neutral return despite still being negative.

Summary of key observations:

1. Persistent losses reflected by negative NOPAT each year, with the greatest loss in 2022 followed by a marked improvement in 2023 and 2024.

2. Fluctuations in invested capital with an initial reduction in 2021 but a subsequent and steady increase through 2024, indicating continued investment or capital commitment.

3. Negative ROIC through the entire period, showing challenges in profitability relative to invested capital, though a notable trend toward recovery and reduced negative returns by 2024.

Overall, the data indicates a business experiencing operational losses but actively investing in its capital base, with improving efficiency and profitability metrics toward the end of the period analyzed. The trends suggest efforts to reverse losses and enhance returns on capital, although profitability remains marginally negative as of the most recent year.

The financial data presents key performance indicators over five consecutive years, revealing significant fluctuations and some notable trends.

Operating Profit Margin (OPM)

The operating profit margin shows variability with a general trend toward improvement by the end of the period. Initially, it was negative at -13.92% in 2020, improved to -8.16% in 2021, but then deteriorated significantly to -21.5% in 2022. Subsequently, it rebounded to -7.58% in 2023 and further improved dramatically to nearly break even at -0.01% in 2024. This indicates efforts to control operating costs or increase operating efficiency, although profitability remained slightly negative as of 2024.

Turnover of Capital (TO)

This ratio reflects the efficiency with which the company utilizes its capital to generate revenue. The turnover of capital increased sharply from 0.6 in 2020 to 1.54 in 2021, implying a significant improvement in asset utilization. Although there was a slight decrease to 1.24 in 2022, the ratio strengthened again to 1.65 in 2023 and continued to rise to 1.71 in 2024. Overall, this suggests enhanced operational efficiency in managing capital resources throughout the period.

Effective Cash Tax Rate (CTR)

The effective cash tax rate remained constant at 100% throughout all years, indicating that the company did not record any tax benefit or deferral during this period. This is consistent and suggests either full tax obligations on taxable income or consistent tax treatment in cash terms annually.

Return on Invested Capital (ROIC)

The return on invested capital consistently reflects negative returns, with the rate decreasing from -8.64% in 2020 to a low of -26.69% in 2022, indicating deteriorating returns on capital investments. However, this metric improved in subsequent years to -12.64% in 2023 and almost returned to neutral at -0.09% in 2024. The trend mirrors the operating profit margin's recovery, suggesting improved capital efficiency and closer alignment of returns with invested capital in recent years.

In summary, while the company experienced periods of declining profitability and capital returns, the last two years depict a positive movement toward operational and capital efficiency improvements. Despite persistent negative profit margins and capital returns, the proximity to break-even levels in 2024 indicates progress that could potentially lead to profitability if sustained.

Revenue

Revenue has exhibited a consistent upward trend from 2020 to 2024, increasing from $2,886 million in 2020 to $10,722 million in 2024. This indicates significant growth in the company's top line over the five-year period, with the revenue nearly quadrupling.

Net Operating Profit Before Taxes (NOPBT)

NOPBT has remained negative throughout the period but shows some fluctuation. It was -$402 million in 2020, slightly improving to -$399 million in 2021. However, there was a substantial decline in 2022 to -$1,415 million, indicating a sharp increase in operating losses. Subsequently, losses decreased to -$655 million in 2023 and further improved significantly to near break-even at -$2 million in 2024.

Operating Profit Margin (OPM)

The operating profit margin has consistently been negative, reflecting operating losses relative to revenue. It started at -13.92% in 2020 and improved somewhat to -8.16% in 2021. In 2022, the margin deteriorated sharply to -21.5%, corresponding to the spike in operating losses seen in NOPBT. In 2023, profitability improved to -7.58%, and by 2024, the margin approached zero at -0.01%, indicating a near break-even operating performance.

Overall Analysis

Despite strong revenue growth, the company has struggled with profitability, as evidenced by persistent operating losses. The sharp increase in losses and margin deterioration in 2022 suggests possibly elevated costs or investment during that year. However, from 2023 onward, there is a clear positive trend towards reducing losses and improving profitability, culminating in a near break-even position in 2024. This suggests that while the company is expanding rapidly, it is gradually moving toward operational efficiency and financial stability.

The financial data reveals a consistent upward trend in revenue over the five-year period. Revenue increased from US$ 2,886 million in 2020 to US$ 10,722 million in 2024, indicating sustained growth in the company’s sales or service income. The growth appears relatively steady, with particularly notable acceleration between 2021 and 2024.

Invested capital shows a more variable pattern. It initially decreased from US$ 4,792 million in 2020 to US$ 3,179 million in 2021, followed by a substantial rebound to US$ 5,320 million in 2022. After a slight decline to US$ 5,237 million in 2023, invested capital rose again to US$ 6,261 million in 2024. This fluctuation suggests strategic adjustments in capital deployment or divestitures during the earlier years, before resuming an expansionary stance in the latter periods.

The turnover of capital (TO), defined as the ratio of revenue to invested capital, highlights efficiency in utilizing capital to generate revenue. The ratio increased from 0.60 in 2020 to 1.54 in 2021, demonstrating a significant improvement in capital efficiency during the first year. Although there was a subsequent decrease to 1.24 in 2022, the TO ratio climbed again to 1.65 in 2023 and 1.71 by 2024. This indicates an overall enhancement of capital turnover efficiency, with temporary fluctuations possibly linked to changes in invested capital or operational effectiveness.

In summary, the data reflects robust revenue growth accompanied by a variable but generally upward trend in invested capital. Capital efficiency, as measured by turnover of capital, improved markedly over the period despite some interim volatility. The company appears to be managing its capital deployment with increasing effectiveness while expanding its revenue base substantially.

Over the analyzed five-year period, the cash operating taxes demonstrate a fluctuating downward trend. Starting at 13 million US dollars in 2020, the cash taxes slightly decreased to 12 million in 2021, then significantly dropped to 5 million by the end of 2022. Although there was a minor increase to 7 million in 2023, the amount declined again to 4 million in 2024, representing the lowest point in the period.

The net operating profit before taxes (NOPBT) values show consistently negative figures throughout the period, indicating continuous operating losses. In 2020, the NOPBT was -402 million US dollars, which remained relatively stable in 2021 at -399 million. However, there was a notable deterioration in 2022, with the loss reaching -1415 million, marking the most significant negative result in the dataset. In 2023, the loss improved considerably to -655 million, and by 2024, it nearly broke even at -2 million, showing significant recovery.

The effective cash tax rate (CTR) is not reported for any of the years, suggesting missing or unreported data in this regard.

Summary of trends:

Cash operating taxes declined overall with some minor fluctuations, reaching the lowest level in the final year.

Net operating profit before taxes, despite being negative throughout, showed a substantial increase in losses in 2022 followed by marked improvement in the subsequent two years, almost reaching break-even by 2024.

Absence of effective cash tax rate data limits tax efficiency analysis.