DoorDash, Inc. (NASDAQ:DASH)

Return on Assets (ROA)

The return on assets demonstrates a fluctuating trend over the observed period. Initially, ROA was negative at -7.26% in 2020, slightly improving to -6.87% in 2021. However, it significantly declined to -13.94% in 2022, indicating a sharp decrease in asset profitability. Following this dip, ROA improved markedly in the subsequent years, reaching -5.15% in 2023 and turning positive at 0.96% by 2024. This pattern suggests recovery in the company’s efficiency in generating profits from its assets.

Financial Leverage

Financial leverage shows a gradual increasing trend from 1.35 in 2020 to 1.65 in 2024. The ratio increased moderately from 1.35 to 1.46 between 2020 and 2021, remained stable at 1.45 in 2022, before continuing a steady rise to 1.59 in 2023 and 1.65 in 2024. This progression indicates a growing reliance on debt or borrowed funds relative to equity, which may imply an increasing risk profile over time.

Return on Equity (ROE)

The return on equity exhibits volatility with a broadly negative trend early on, followed by a recovery. ROE was negative at -9.81% in 2020, declining further to -10.03% in 2021. In 2022, it deteriorated sharply to -20.21%, reflecting a significant reduction in shareholder value. However, a recovery trend is evident with an improvement to -8.2% in 2023 and eventually becoming positive at 1.58% in 2024. This recovery suggests improved profitability and efficiency in generating returns for shareholders after a period of substantial losses.

Net Profit Margin

The net profit margin exhibited significant fluctuations over the analyzed period. Starting at -15.97% in 2020, it improved to -9.57% in 2021, indicating a reduction in losses. However, in 2022, profitability worsened again to -20.74%, representing a substantial decrease in operational efficiency or increased costs. The figure rebounded notably in 2023 to -6.46%, and further improved in 2024, attaining a positive margin of 1.15%, signaling a return to profitability.

Asset Turnover

Asset turnover showed a general upward trend throughout the period. It began at 0.45 in 2020, increasing to 0.72 in 2021, which suggests improved efficiency in utilizing assets to generate revenue. Although there was a slight decline in 2022 to 0.67, the ratio rose again to 0.8 in 2023 and continued to increase moderately to 0.83 in 2024. This pattern reflects progressively enhanced asset management and revenue generation capacity.

Financial Leverage

Financial leverage maintained a steady increasing trajectory from 1.35 in 2020 to 1.65 in 2024. The gradual increase each year indicates a rising use of debt relative to equity, which may amplify returns but also increases financial risk. The leverage ratio rose from 1.35 to 1.46 in 2021, remained almost steady in 2022 at 1.45, and then increased further in 2023 and 2024.

Return on Equity (ROE)

Return on equity followed a pattern similar to the net profit margin, starting with a negative return of -9.81% in 2020, which slightly declined to -10.03% in 2021. The ROE deteriorated further to -20.21% in 2022, reflecting poor profitability relative to shareholder equity. In 2023, there was improvement to -8.2%, and it turned positive to 1.58% in 2024. The overall trend indicates recovery in generating returns for equity holders towards the end of the period.

The financial data indicates several notable trends spanning from 2020 through 2024, reflecting the company’s operational performance, efficiency, and financial structure.

EBIT Margin

The EBIT margin showed significant volatility over the period. Initially, it was negative at -14.76% in 2020, improved to -9.19% in 2021, then sharply declined again to -21.18% in 2022. Following this, it recovered considerably, reaching -6.1% in 2023 before turning positive at 1.51% in 2024. This pattern suggests challenges in profitability during the middle years, followed by a turnaround in operating earnings by the end of the period.

Asset Turnover

This ratio experienced a positive trend, increasing from 0.45 in 2020 to 0.72 in 2021. It declined slightly to 0.67 in 2022, then resumed growth to 0.8 in 2023 and 0.83 in 2024. The overall upward movement implies improving efficiency in utilizing assets to generate revenue over the five-year span.

Financial Leverage

Financial leverage remained relatively stable but with a gradual increase, starting at 1.35 in 2020, rising to 1.46 in 2021, and maintaining around 1.45 in 2022. It then increased further to 1.59 in 2023 and 1.65 in 2024. This steady rise indicates a growing reliance on debt or other liabilities relative to equity, potentially amplifying both risk and return.

Return on Equity (ROE)

ROE followed a broadly similar trajectory to EBIT margin, with negative returns in the earlier years. It started at -9.81% in 2020, worsened slightly to -10.03% in 2021, then fell dramatically to -20.21% in 2022. Improvement was seen in 2023 with ROE climbing to -8.2%, and finally turning positive at 1.58% in 2024. This aligns with the recovery in operating performance as indicated by EBIT margin.

Tax Burden and Interest Burden Ratios

Information is only available for 2024, where the tax burden ratio stands at 0.76 and the interest burden ratio is 1. Their values suggest a moderate reduction in income due to taxes, while interest expenses did not reduce earnings in 2024. The lack of prior data makes it difficult to analyze trends for these metrics.

In summary, the company experienced operational and profitability challenges in the early part of the period, particularly in 2022, with improvements beginning in 2023 and extending into 2024. Efficiency in asset use steadily improved, while leverage increased moderately. The positive turnaround in EBIT margin and ROE in the final year reflects enhanced financial health, though some reliance on leverage increased concurrently.

The analysis of the financial indicators over the five-year period reveals several notable trends and shifts in operational efficiency and profitability.

Net Profit Margin

The net profit margin exhibited significant volatility, starting with a negative margin of -15.97% in 2020. It improved in 2021, reducing the loss to -9.57%, but then deteriorated sharply to -20.74% in 2022. Subsequently, the margin improved substantially, moving to -6.46% in 2023 and turning positive at 1.15% by the end of 2024. This positive turn indicates a transition from loss to profitability.

Asset Turnover

The asset turnover ratio demonstrated a consistent upward trend throughout the period. Beginning at 0.45 in 2020, it increased markedly to 0.72 in 2021. After a slight decline to 0.67 in 2022, it resumed growth to 0.8 in 2023 and 0.83 in 2024. This trend suggests improving efficiency in utilizing assets to generate revenue.

Return on Assets (ROA)

The return on assets mirrored the net profit margin’s volatility, initially negative at -7.26% in 2020 and slightly improving to -6.87% in 2021. It worsened significantly to -13.94% in 2022 then improved again to -5.15% in 2023 and turned positive at 0.96% in 2024. This pattern indicates a recovery in the company’s ability to generate profit from its asset base.

Overall, the data indicates that after a period of substantial losses in 2020 and 2022, the company has demonstrated a steady recovery in profitability and asset efficiency. By 2024, the transition to positive profit margins and ROA, coupled with steadily increasing asset turnover, suggests improved operational performance and financial health.

Tax Burden

The tax burden ratio is only available for the year ending December 31, 2024, at 0.76. This indicates that the company retained 76% of its earnings after taxes in that year.

Interest Burden

The interest burden ratio is reported solely for December 31, 2024, at 1. This suggests there were no interest expenses reducing operating income in that year, reflecting potentially no debt-related interest or full coverage of interest expenses.

EBIT Margin

The EBIT margin shows a volatile trend over the five-year period. Initially, the margin was negative at -14.76% in 2020, improving to -9.19% in 2021, but then sharply declined again to -21.18% in 2022. Subsequently, there was a marked improvement with the margin rising to -6.1% in 2023 and finally turning positive to 1.51% in 2024. This trajectory suggests the company initially struggled with operating profitability but made substantive progress towards positive operating margins by 2024.

Asset Turnover

The asset turnover ratio displayed an overall improving trend over the period. Starting at 0.45 in 2020, it improved to 0.72 in 2021, slightly dipped to 0.67 in 2022, then rose steadily to 0.8 in 2023 and 0.83 in 2024. The increase in asset turnover indicates growing efficiency in using assets to generate revenue, despite the minor dip in 2022.

Return on Assets (ROA)

The return on assets metric consistently mirrored the EBIT margin trend but remained negative for most of the period: -7.26% in 2020, slight improvement to -6.87% in 2021, followed by a deterioration to -13.94% in 2022. Afterward, ROA improved significantly to -5.15% in 2023 and ultimately turned positive at 0.96% in 2024. This progress indicates an overall enhancement in the company's ability to generate profit from its assets, culminating in a positive return in 2024.

Tax Burden

The data for the tax burden ratio is only available for the year ending December 31, 2024, where it stands at 0.76. This indicates that the company retained 76% of its earnings before tax after accounting for taxes in that year.

Interest Burden

The interest burden ratio is also only reported for the year ending December 31, 2024, at a value of 1. This suggests that the company did not incur interest expenses that reduced its earnings before tax in that period, implying no interest cost impact on profitability for that year.

EBIT Margin

The EBIT margin exhibits considerable variability over the five-year period. It started at a negative 14.76% in 2020, improved to negative 9.19% in 2021, then worsened sharply to negative 21.18% in 2022. Following this downturn, the margin showed significant recovery, improving to negative 6.1% in 2023 and turning positive to 1.51% in 2024. The progression indicates initial losses at the operating level, a significant dip in 2022, followed by a strong rebound resulting in positive operating profitability by 2024.

Net Profit Margin

The net profit margin trends closely mirror those of the EBIT margin, suggesting consistent impacts of non-operating items on net profitability. It began at negative 15.97% in 2020, improved to negative 9.57% in 2021, deteriorated markedly to negative 20.74% in 2022, then improved to negative 6.46% in 2023 and finally slightly positive at 1.15% in 2024. This pattern indicates periods of net losses with a substantial loss in 2022, followed by recovery into positive net profitability by 2024.