Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
DoorDash, Inc., liquidity ratios
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Current ratio | 1.41 | 1.66 | 1.64 | 1.86 | 2.59 | |
| Quick ratio | 1.12 | 1.41 | 1.38 | 1.54 | 2.33 | |
| Cash ratio | 0.94 | 1.25 | 1.23 | 1.38 | 2.13 |
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 liquidity position, as indicated by the presented ratios, demonstrates a consistent decline over the five-year period. All three measured ratios – current, quick, and cash – exhibit downward trends, suggesting a decreasing ability to meet short-term obligations using readily available assets.
- Current Ratio
- The current ratio decreased from 2.59 in 2021 to 1.41 in 2025. While the ratio remained above 1.0 throughout the period, indicating a positive ability to cover current liabilities with current assets, the diminishing value suggests a weakening short-term financial strength. The rate of decline appeared to moderate between 2023 and 2024, before resuming a downward trajectory in 2025.
- Quick Ratio
- A similar downward trend is observed in the quick ratio, moving from 2.33 in 2021 to 1.12 in 2025. This ratio, which excludes inventory from current assets, provides a more conservative measure of liquidity. The consistent decrease indicates a reduction in the company’s ability to meet short-term obligations with its most liquid assets. The decline mirrors that of the current ratio, with a slight stabilization between 2023 and 2024 before a further decrease in 2025.
- Cash Ratio
- The cash ratio experienced the most substantial decline, falling from 2.13 in 2021 to 0.94 in 2025. This ratio focuses solely on cash and cash equivalents relative to current liabilities, representing the most conservative measure of immediate liquidity. The decrease below 1.0 in 2025 suggests that cash and cash equivalents alone may be insufficient to cover immediate liabilities. The rate of decline was relatively consistent throughout the period.
Collectively, these trends suggest a strategic shift in asset allocation or an increase in short-term liabilities, or a combination of both. Further investigation would be required to determine the underlying causes of these changes and their potential implications for the company’s financial health.
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Current Ratio
DoorDash, Inc., current 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) | ||||||
| Current assets | 8,643) | 7,386) | 5,597) | 4,720) | 4,565) | |
| Current liabilities | 6,147) | 4,438) | 3,410) | 2,544) | 1,760) | |
| Liquidity Ratio | ||||||
| Current ratio1 | 1.41 | 1.66 | 1.64 | 1.86 | 2.59 | |
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| Airbnb Inc. | 1.38 | 1.69 | 1.66 | 1.86 | 1.95 | |
| Booking Holdings Inc. | 1.33 | 1.31 | 1.28 | 1.86 | 2.10 | |
| Chipotle Mexican Grill Inc. | 1.23 | 1.52 | 1.57 | 1.28 | 1.58 | |
| McDonald’s Corp. | 0.95 | 1.19 | 1.16 | 1.43 | 1.78 | |
| Starbucks Corp. | 0.72 | 0.75 | 0.78 | 0.77 | 1.20 | |
| Current Ratio, Sector | ||||||
| Consumer Services | 1.20 | 1.31 | 1.28 | 1.49 | 1.77 | |
| Current Ratio, Industry | ||||||
| Consumer Discretionary | 1.18 | 1.22 | 1.20 | 1.15 | 1.25 | |
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 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 8,643 ÷ 6,147 = 1.41
2 Click competitor name to see calculations.
The current ratio experienced a declining trend over the five-year period. Initially strong, the ratio decreased consistently from 2021 to 2025, indicating a weakening short-term liquidity position.
- Current Ratio Trend
- In 2021, the current ratio stood at 2.59, suggesting a robust ability to cover short-term obligations with short-term assets. A substantial decrease was observed in 2022, with the ratio falling to 1.86. This decline continued in 2023, reaching 1.64, and stabilized slightly in 2024 at 1.66. The most recent year, 2025, shows a further reduction to 1.41.
The decrease in the current ratio is attributable to a faster growth rate in current liabilities compared to current assets. While current assets increased over the period, the growth in current liabilities was more pronounced, particularly between 2021 and 2023. The rate of increase in current liabilities accelerated in the later years, contributing to the continued downward pressure on the ratio.
- Asset and Liability Growth
- Current assets increased from US$4,565 million in 2021 to US$8,643 million in 2025, representing a significant overall increase. However, current liabilities grew from US$1,760 million in 2021 to US$6,147 million in 2025, a proportionally larger increase. This disparity in growth rates is the primary driver of the declining current ratio.
The ratio of 1.41 in 2025, while still above 1.0, suggests a reduced margin of safety in meeting short-term obligations. Continued monitoring of this trend and the underlying components of current assets and current liabilities is warranted.
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Quick Ratio
DoorDash, Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 4,378) | 4,019) | 2,656) | 1,977) | 2,504) | |
| Restricted cash | 273) | 190) | 105) | —) | —) | |
| Short-term investments | 1,128) | 1,322) | 1,422) | 1,544) | 1,253) | |
| Accounts receivable, net | 1,108) | 732) | 533) | 400) | 349) | |
| Total quick assets | 6,887) | 6,263) | 4,716) | 3,921) | 4,106) | |
| Current liabilities | 6,147) | 4,438) | 3,410) | 2,544) | 1,760) | |
| Liquidity Ratio | ||||||
| Quick ratio1 | 1.12 | 1.41 | 1.38 | 1.54 | 2.33 | |
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| Airbnb Inc. | 1.33 | 1.64 | 1.62 | 1.83 | 1.91 | |
| Booking Holdings Inc. | 1.26 | 1.24 | 1.20 | 1.73 | 2.00 | |
| Chipotle Mexican Grill Inc. | 1.01 | 1.34 | 1.37 | 1.09 | 1.35 | |
| McDonald’s Corp. | 0.74 | 0.90 | 1.03 | 1.24 | 1.64 | |
| Starbucks Corp. | 0.46 | 0.52 | 0.55 | 0.48 | 0.93 | |
| Quick Ratio, Sector | ||||||
| Consumer Services | 1.06 | 1.18 | 1.15 | 1.31 | 1.61 | |
| Quick Ratio, Industry | ||||||
| Consumer Discretionary | 0.87 | 0.91 | 0.86 | 0.81 | 0.93 | |
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 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 6,887 ÷ 6,147 = 1.12
2 Click competitor name to see calculations.
The quick ratio demonstrates a fluctuating pattern over the five-year period. Initially, the ratio decreased before stabilizing and then exhibiting a further decline.
- Overall Trend
- The quick ratio began at 2.33 in 2021, indicating a strong ability to meet short-term obligations with highly liquid assets. A decrease was observed in 2022, falling to 1.54, suggesting a reduced capacity to cover immediate liabilities. The ratio continued to decline in 2023 to 1.38, before a slight increase to 1.41 in 2024. The most recent year, 2025, shows a further decrease to 1.12.
- Quick Asset Evolution
- Total quick assets increased from US$4,106 million in 2021 to US$6,887 million in 2025. However, this growth did not consistently translate into a stronger quick ratio, as the increase in current liabilities outpaced the growth in quick assets in several periods.
- Liability Impact
- Current liabilities increased substantially over the period, rising from US$1,760 million in 2021 to US$6,147 million in 2025. This significant rise in short-term obligations contributed to the observed decline in the quick ratio, particularly in the later years of the period.
The decreasing trend in the quick ratio from 2022 through 2025 suggests a weakening short-term liquidity position. While quick assets have grown in absolute terms, the faster growth of current liabilities has eroded the company’s ability to readily cover its immediate obligations.
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Cash Ratio
DoorDash, Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cash and cash equivalents | 4,378) | 4,019) | 2,656) | 1,977) | 2,504) | |
| Restricted cash | 273) | 190) | 105) | —) | —) | |
| Short-term investments | 1,128) | 1,322) | 1,422) | 1,544) | 1,253) | |
| Total cash assets | 5,779) | 5,531) | 4,183) | 3,521) | 3,757) | |
| Current liabilities | 6,147) | 4,438) | 3,410) | 2,544) | 1,760) | |
| Liquidity Ratio | ||||||
| Cash ratio1 | 0.94 | 1.25 | 1.23 | 1.38 | 2.13 | |
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| Airbnb Inc. | 0.81 | 1.04 | 1.01 | 1.21 | 1.31 | |
| Booking Holdings Inc. | 1.03 | 1.03 | 0.95 | 1.46 | 1.79 | |
| Chipotle Mexican Grill Inc. | 0.88 | 1.22 | 1.26 | 0.98 | 1.23 | |
| McDonald’s Corp. | 0.18 | 0.28 | 0.67 | 0.68 | 1.17 | |
| Starbucks Corp. | 0.34 | 0.39 | 0.42 | 0.35 | 0.81 | |
| Cash Ratio, Sector | ||||||
| Consumer Services | 0.75 | 0.86 | 0.84 | 0.98 | 1.30 | |
| Cash Ratio, Industry | ||||||
| Consumer Discretionary | 0.50 | 0.52 | 0.48 | 0.47 | 0.64 | |
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 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 5,779 ÷ 6,147 = 0.94
2 Click competitor name to see calculations.
The cash ratio exhibited a declining trend over the five-year period. Initially strong, the ratio decreased from 2.13 in 2021 to 0.94 in 2025. While total cash assets generally increased, the growth in current liabilities outpaced this increase, contributing to the ratio’s decline.
- Cash Ratio Trend
- The cash ratio began at 2.13 in 2021, indicating the company held more than twice the amount of cash needed to cover its current liabilities. A decrease to 1.38 was observed in 2022, suggesting a reduced ability to meet short-term obligations with only cash and cash equivalents. This downward trend continued in 2023, with the ratio falling to 1.23. A slight stabilization occurred in 2024, with the ratio remaining at 1.25, but the decline resumed in 2025, reaching 0.94. This final value indicates the company’s cash holdings were less than its current liabilities.
- Cash Asset Evolution
- Total cash assets increased from US$3,757 million in 2021 to US$5,779 million in 2025. However, the rate of increase was not consistent. A slight decrease was noted between 2021 and 2022, followed by increases in 2023 and 2024. The increase from 2024 to 2025 was relatively modest.
- Current Liabilities Growth
- Current liabilities demonstrated consistent growth throughout the period, rising from US$1,760 million in 2021 to US$6,147 million in 2025. The growth rate accelerated over time, with larger increases observed in 2023, 2024, and 2025 compared to the earlier years. This accelerating growth in current liabilities is a primary driver of the declining cash ratio.
The combination of increasing current liabilities and fluctuating, but ultimately insufficient, growth in cash assets resulted in a weakening cash position as measured by the cash ratio. The company’s ability to cover its immediate obligations with available cash diminished over the observed period.
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