DoorDash, Inc. (NASDAQ:DASH)

The analysis of the quarterly financial ratios over the reported periods reveals several notable trends in operational efficiency and asset utilization.

Net Fixed Asset Turnover

The net fixed asset turnover ratio, starting from March 31, 2021, shows an initial level above 12, then gradually declined to approximately 10.31 by December 31, 2021. Thereafter, it consistently increased quarter-on-quarter, reaching a peak near 13.85 by September 30, 2024, before slightly tapering off to around 13.13 by June 30, 2025. This indicates improving efficiency in generating revenue from fixed assets over time, with some mild volatility in its later stages.

Net Fixed Asset Turnover Including Operating Lease (Right-of-Use Asset)

This adjusted metric follows a somewhat similar trajectory, albeit at roughly half the magnitude compared to the standard net fixed asset turnover. It started at 6.62 in March 31, 2021, showed a declining trend to about 5.9 by September 30, 2021, then steadily increased to 6.14 by March 31, 2022, and continued rising to peak around 9.19 by September 30, 2024. The ratio then slightly decreased and stabilized near 9.17 by mid-2025. This pattern reflects improving effectiveness in asset use including leased assets, suggesting enhanced operational management of both owned and leased fixed assets.

Total Asset Turnover

The total asset turnover ratio presented a fluctuating pattern initially, dipping from 0.72 to 0.57 between March 31, 2021, and September 30, 2021, recovering thereafter to 0.81 by December 31, 2022. From this point forward, it remained relatively stable near 0.80 to 0.83 until March 31, 2025, before decreasing to 0.70 by June 30, 2025. This suggests a period of volatility followed by stable asset utilization, with a recent downward trend that may warrant further investigation into asset productivity or revenue generation efficiency.

Equity Turnover

Equity turnover displayed considerable variability early on, with a decline from 1.05 to 0.76 between March 31, 2021, and September 30, 2021, then recovering gradually to 1.24 by December 31, 2022. There was a consistent upward trend thereafter, reaching a high of approximately 1.37 by September 30, 2024, with only slight tapering towards the mid-2025 period, ending near 1.33. This indicates an improving ability to generate sales from shareholder equity, reflecting potentially enhanced capital efficiency or growth in revenues relative to equity base.

Overall, the company demonstrated an increasing efficiency in utilizing fixed assets and equity to generate revenue over the period analyzed. The stable total asset turnover after initial fluctuations suggests an improvement in overall asset productivity, whereas the slight decline toward mid-2025 may indicate emerging challenges or shifts in asset base or sales dynamics. The inclusion of leased assets in asset turnover analysis reveals consistent improvement, highlighting better operational leverage of both owned and leased assets.

Revenue Trends

Revenue exhibited a consistent upward trajectory over the observed periods, increasing from $1,077 million in March 2021 to $3,284 million in June 2025. This represents a near threefold growth across the timeframe. The quarterly growth appears relatively steady, with no significant declines, indicating robust demand and successful business expansion.

Property and Equipment, Net

Net property and equipment assets also showed a continuous increase, rising from $250 million in March 2021 to $906 million in June 2025. This growth reflects ongoing investments in fixed assets, potentially to support the expanding operations corresponding with revenue increases. Notably, asset growth decelerated slightly in mid-2024 but resumed upward momentum thereafter.

Net Fixed Asset Turnover Ratio

The net fixed asset turnover ratio, available from December 2021 onward, indicates how effectively the company uses its fixed assets to generate revenue. Initially recorded at 12.16, the ratio demonstrated a gradual decline through 2022, reaching a low of approximately 10.31 by December 2021 but then steadily improved throughout subsequent periods, peaking at 13.85 in September 2024. Towards the end of the period, the ratio slightly dipped but remained above 13, signifying enhanced efficiency in asset utilization over time.

Insights and Interpretations

The steadily rising revenue alongside the increasing investment in net property and equipment suggests a parallel growth strategy focused on scaling operations. The improvement in the net fixed asset turnover ratio indicates that despite increasing fixed asset base, the company has become more efficient in leveraging these assets to generate revenue. Overall, the trends reflect a positive operational performance with expanding capacity and enhanced asset utilization.

The financial data presents a clear upward trajectory in revenue over the observed periods, indicating consistent growth. Starting from US$1,077 million in March 2021, revenue steadily increases each quarter, reaching US$3,284 million by June 2025. This growth suggests an expanding business scale and potentially increasing market demand or improved operational efficiency.

Regarding property and equipment, net (including operating lease, right-of-use asset), values also demonstrate an upward trend but with some fluctuations. Beginning at US$456 million in March 2021, the asset base grows significantly through the periods, peaking at US$1,297 million in June 2025. Notably, there is a slight decline observed around mid-2024, where the figure dips from US$1,153 million in March 2024 to US$1,082 million in June 2024 before resuming its upward trend. This could be attributed to asset disposals, revaluation, or other operational adjustments during that quarter. Overall, the increase in assets aligns with the growing revenue, reflecting investments to support business expansion.

The net fixed asset turnover ratio (including operating lease, right-of-use asset) provides insight into the efficiency of asset utilization to generate revenue. Starting from 6.62 in December 2021, this ratio initially declines slightly to 5.9 in September 2022 but then exhibits a continuous rising trend, reaching 9.17 by June 2025. The increasing ratio indicates improved efficiency, meaning the company is generating more revenue per unit of fixed assets over time. The dip observed in 2022 may signal a temporary inefficiency or asset buildup before improvements were realized.

Revenue Trend

Consistent quarter-over-quarter growth from US$1,077 million to US$3,284 million over four years, demonstrating strong business expansion.

Property and Equipment, Net Trend

Substantial growth from US$456 million to US$1,297 million, with a minor mid-2024 decline suggesting asset revaluation or disposals.

Net Fixed Asset Turnover Ratio

Improved efficiency in asset utilization, rising from 6.62 to 9.17, indicating increasing revenue generated per asset unit despite a brief dip in 2022.

Overall, the data depicts a company that is both growing in scale and improving in asset efficiency, implying effective management strategies and successful operational scaling during the periods analyzed.

Over the observed periods, revenue demonstrates a consistent upward trajectory, increasing from $1,077 million at the end of the first quarter of 2021 to $3,284 million by the second quarter of 2025. This steady growth indicates an expanding market presence or increased sales volume with more pronounced growth rates in the later quarters, particularly after 2022.

Total assets also show an overall increasing trend, albeit with some fluctuations. Assets rose from $5,902 million in the first quarter of 2021 to $9,928 million by mid-2022, followed by a brief decline and stabilization around the $9,500-$10,800 million range through early 2023. Afterward, total assets resumed growth more noticeably, reaching $16,950 million by mid-2025. This suggests continued investments in assets or acquisitions over time, with some temporary adjustments or asset sales during 2022 and early 2023.

The total asset turnover ratio, representing the efficiency with which assets generate revenue, begins at 0.72 in late 2021, improves to 0.77 by the first quarter of 2022, then declines to 0.57 in the third quarter of 2022. Following this decline, the ratio increases steadily through 2023 and 2024, stabilizing around 0.8 to 0.83 for several quarters before dropping again to 0.7 by mid-2025. The episodes of increase in turnover ratio suggest periods of improved operational efficiency and asset utilization, whereas the declines highlight temporarily reduced efficiency, possibly due to asset growth outpacing revenue increases or changing business dynamics.

Revenue

Consistent growth from $1,077 million in Q1 2021 to $3,284 million in Q2 2025, reflecting strong business expansion.

Total Assets

Overall increasing trend with some volatility around 2022-2023, ranging from $5,902 million to $16,950 million across the period, indicating capital investments and growth initiatives.

Total Asset Turnover

Fluctuations observed with initial rise to 0.77, a dip to 0.57, recovery to around 0.8, and a subsequent decline to 0.7 by mid-2025, pointing to varying asset efficiency over time.

In summary, while revenue growth remains robust and relatively uninterrupted, asset growth and utilization efficiency present more variability, suggesting dynamic asset management strategies or operational shifts within the periods analyzed.

Revenue Trends

Revenue has demonstrated a consistent upward trajectory from March 31, 2021, through June 30, 2025. Starting at $1,077 million in the first quarter of 2021, it increased steadily each quarter, reaching $3,284 million by the second quarter of 2025. This indicates robust and continuous growth over the observed period, with no quarters showing a decline. The quarterly growth appears stable, reflecting ongoing expansion in business operations or market demand.

Stockholders’ Equity Movements

Stockholders' equity showed moderate increases initially, ranging from $4,555 million in March 2021 to $4,667 million by December 2021. A significant increase occurred in the second quarter of 2022, where equity jumped to $7,410 million, before slightly declining to $6,754 million by December 2022. Following this, a gradual upward trend resumed, with equity rising steadily to $8,923 million by June 2025. The sharp spike in mid-2022 suggests an infusion of capital, retained earnings accumulation, or other equity-related events, after which the equity base stabilized and grew progressively.

Equity Turnover Ratio Analysis

The equity turnover ratio, which measures revenue generated per unit of equity, shows an improving pattern overall. Starting from a ratio of 1.05 in December 2021, the ratio increased to a peak of about 1.37 in March 2025 before slightly dipping to 1.33 in June 2025. Early fluctuations occurred with a decrease to 0.76 in September 2022, suggesting that at that time, revenue growth was slower relative to equity growth. However, the subsequent steady rise indicates improved efficiency in utilizing equity to generate revenue, particularly in the latter part of the reported period.

Comprehensive Insights

The data reflects strong revenue growth accompanied by an increasing equity base, with equity turnover ratios improving toward the end of the period. This suggests that the company has effectively scaled its operations while enhancing returns on equity. The mid-2022 increase in equity may have provided capital necessary for accelerated growth, and the subsequent steady increase in equity turnover indicates improved operational efficiency or profitability. The sustained upward trends in both revenue and equity turnover ratio highlight positive financial momentum.