Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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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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Profitability Ratios (Summary)
DoorDash, Inc., profitability ratios
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 profitability metrics demonstrate a clear improvement over the five-year period. Initially, the company experienced negative margins and returns, but these figures progressively moved towards positive values, culminating in substantial gains by the end of the observed timeframe.
- Gross Profit Margin
- The gross profit margin exhibited volatility, decreasing from 52.17% in 2021 to 45.50% in 2022, before stabilizing and increasing to 50.88% in 2025. This suggests some initial pressure on cost of goods sold, followed by improved cost management or pricing strategies.
- Operating and Net Profit Margins
- Both operating and net profit margins followed a similar trajectory, starting with significant negative values in 2021 and 2022. Operating margin improved from -17.07% to -0.35% by 2024, and then turned positive at 5.27% in 2025. Net profit margin mirrored this trend, moving from -20.74% to 1.15% in 2024, and reaching 6.82% in 2025. This indicates a substantial improvement in operational efficiency and overall profitability.
- Return on Equity (ROE)
- Return on equity mirrored the trend of the profit margins, transitioning from negative values to positive territory. Starting at -10.03% in 2021, ROE increased steadily, reaching 9.32% in 2025. This signifies a growing ability to generate profit from shareholder investments.
- Return on Assets (ROA)
- Return on assets also showed a consistent upward trend, moving from -6.87% in 2021 to 4.76% in 2025. This indicates an increasing efficiency in utilizing assets to generate earnings.
Collectively, the ratios suggest a significant turnaround in financial performance. The company successfully navigated initial challenges and implemented strategies that led to improved profitability and enhanced returns for both shareholders and asset utilization.
Return on Sales
Return on Investment
Gross Profit Margin
DoorDash, Inc., gross profit margin 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) | ||||||
| Gross profit | ||||||
| Revenue | ||||||
| Profitability Ratio | ||||||
| Gross profit margin1 | ||||||
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Airbnb 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 2025 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenue
= 100 × ÷ =
2 Click competitor name to see calculations.
The gross profit margin exhibited fluctuations over the five-year period. While gross profit consistently increased in absolute terms, the gross profit margin as a percentage of revenue displayed a more complex pattern.
- Gross Profit Margin Trend
- In 2021, the gross profit margin stood at 52.17%. A decline was observed in 2022, falling to 45.50%. This represented the lowest margin observed during the analyzed period. Subsequently, the margin experienced a recovery, increasing to 46.86% in 2023 and further to 48.31% in 2024. The upward trend continued into 2025, with the gross profit margin reaching 50.88%.
The initial decrease in the gross profit margin in 2022 coincided with a significant increase in revenue. While gross profit also increased, it did not keep pace with the revenue growth, resulting in the margin compression. The subsequent improvements in the margin from 2023 onwards suggest a potential stabilization of cost structures or increased pricing power. The margin in 2025 approached, but did not surpass, the level achieved in 2021.
- Gross Profit and Revenue Relationship
- The consistent growth in both gross profit and revenue indicates overall business expansion. However, the varying rates of growth between these two items directly influence the gross profit margin. The period of margin decline suggests that revenue growth outpaced the growth in gross profit, while the periods of margin improvement indicate the opposite.
The observed trend suggests a potential for improved profitability as the company scales, provided it can maintain or further improve the relationship between revenue and gross profit growth. Continued monitoring of this margin is recommended to assess the sustainability of the recent improvements.
Operating Profit Margin
DoorDash, Inc., operating profit margin 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) | ||||||
| Income (loss) from operations | ||||||
| Revenue | ||||||
| Profitability Ratio | ||||||
| Operating profit margin1 | ||||||
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| Operating Profit Margin, Sector | ||||||
| Consumer Services | ||||||
| Operating Profit Margin, Industry | ||||||
| Consumer Discretionary | ||||||
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
Operating profit margin = 100 × Income (loss) from operations ÷ Revenue
= 100 × ÷ =
2 Click competitor name to see calculations.
The operating profit margin exhibited a significant, multi-year trend of improvement. Initially negative, the metric progressed towards profitability over the analyzed period.
- Operating Profit Margin Trend
- In 2021, the operating profit margin stood at -9.25%. This indicates that for every dollar of revenue, the company experienced an operating loss of approximately 9.25 cents.
- The margin deteriorated substantially in 2022, reaching -17.07%. This represents a widening of the operating loss relative to revenue, suggesting increased operational challenges or cost pressures during that year.
- A notable improvement occurred in 2023, with the operating profit margin increasing to -6.71%. While still negative, this signifies a reduction in the operating loss and a step towards profitability.
- The trend continued positively in 2024, with the margin reaching -0.35%. This near-breakeven result demonstrates substantial progress in controlling costs and improving operational efficiency.
- By 2025, the operating profit margin had turned positive, reaching 5.27%. This indicates that the company generated an operating profit of approximately 5.27 cents for every dollar of revenue, signifying successful achievement of operational profitability.
The progression from substantial operating losses to a positive operating profit margin over the five-year period suggests successful implementation of strategies focused on cost management, revenue growth, or a combination of both. The magnitude of the improvement from 2022 to 2025 is particularly noteworthy.
- Relationship to Revenue
- Revenue consistently increased throughout the period, rising from US$4,888 million in 2021 to US$13,717 million in 2025. The improvement in the operating profit margin occurred concurrently with this revenue growth, suggesting that increased scale contributed to the enhanced profitability.
The shift in operating profit from a loss of US$452 million in 2021 to a profit of US$723 million in 2025 further underscores the positive trend in operational performance.
Net Profit Margin
DoorDash, Inc., net profit margin calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to DoorDash, Inc. common stockholders | ||||||
| Revenue | ||||||
| Profitability Ratio | ||||||
| Net profit margin1 | ||||||
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| Net Profit Margin, Sector | ||||||
| Consumer Services | ||||||
| Net Profit Margin, Industry | ||||||
| Consumer Discretionary | ||||||
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
Net profit margin = 100 × Net income (loss) attributable to DoorDash, Inc. common stockholders ÷ Revenue
= 100 × ÷ =
2 Click competitor name to see calculations.
The net profit margin exhibited significant fluctuations over the five-year period. Initially negative, it demonstrated a path towards profitability, culminating in a positive margin by the final year of the observed period.
- Net Profit Margin Trend
- In 2021, the net profit margin was -9.57%, indicating a net loss relative to revenue. This margin deteriorated substantially in 2022, reaching -20.74%, signifying a widening loss. A moderate improvement was noted in 2023, with the net profit margin increasing to -6.46%, suggesting a reduction in the magnitude of the net loss. The trend reversed in 2024, as the net profit margin turned positive, reaching 1.15%. This positive trend continued into 2025, with the net profit margin expanding to 6.82%, demonstrating a substantial increase in profitability.
The movement from consistent net losses to positive net income is reflected in the net profit margin. The increasing margin in the later years suggests improved operational efficiency, cost management, or revenue growth outpacing expense increases. The substantial difference between the 2022 margin and the 2025 margin highlights a significant shift in the company’s financial performance.
- Relationship to Revenue
- Revenue consistently increased throughout the period, moving from US$4,888 million in 2021 to US$13,717 million in 2025. However, revenue growth alone does not explain the margin improvement. The turnaround in net income, from losses of -US$468 million in 2021 and -US$1,365 million in 2022 to a profit of US$935 million in 2025, was critical to the positive net profit margin observed in the final two years.
The progression of the net profit margin indicates a potential stabilization and strengthening of the company’s financial position. Continued monitoring of this ratio will be important to assess the sustainability of this improved profitability.
Return on Equity (ROE)
DoorDash, Inc., ROE calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to DoorDash, Inc. common stockholders | ||||||
| Stockholders’ equity | ||||||
| Profitability Ratio | ||||||
| ROE1 | ||||||
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| ROE, Sector | ||||||
| Consumer Services | ||||||
| ROE, Industry | ||||||
| Consumer Discretionary | ||||||
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
ROE = 100 × Net income (loss) attributable to DoorDash, Inc. common stockholders ÷ Stockholders’ equity
= 100 × ÷ =
2 Click competitor name to see calculations.
The Return on Equity (ROE) exhibited significant fluctuations over the five-year period. Initially negative, ROE trended downwards before recovering to positive values, ultimately demonstrating substantial growth.
- Net Income Impact
- Net income attributable to DoorDash, Inc. common stockholders was negative in 2021, 2022, and 2023, contributing to negative ROE values during those years. The largest loss occurred in 2022. A positive net income of US$123 million was recorded in 2024, resulting in a modest positive ROE. Net income increased significantly to US$935 million in 2025, driving a substantial improvement in ROE.
- Stockholders’ Equity Trend
- Stockholders’ equity generally increased throughout the period, moving from US$4,667 million in 2021 to US$10,033 million in 2025. The rate of increase was most pronounced between 2024 and 2025. This growth in equity partially offset the impact of negative net income in earlier years and amplified the positive effect of net income in later years.
- ROE Progression
- ROE began at -10.03% in 2021 and deteriorated to -20.21% in 2022, reflecting the larger net loss in that year. A slight improvement to -8.20% was observed in 2023, coinciding with a reduced net loss. The ROE turned positive in 2024, reaching 1.58%, and experienced considerable growth in 2025, achieving 9.32%. This indicates a strengthening ability to generate profit from shareholder investments.
The shift from negative to positive ROE, coupled with the accelerating growth in 2025, suggests a positive trajectory in profitability relative to equity. The increasing stockholders’ equity provides a larger base for future earnings, potentially supporting continued improvements in ROE, assuming net income remains positive and grows.
Return on Assets (ROA)
DoorDash, Inc., ROA calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to DoorDash, Inc. common stockholders | ||||||
| Total assets | ||||||
| Profitability Ratio | ||||||
| ROA1 | ||||||
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| ROA, Sector | ||||||
| Consumer Services | ||||||
| ROA, Industry | ||||||
| Consumer Discretionary | ||||||
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
ROA = 100 × Net income (loss) attributable to DoorDash, Inc. common stockholders ÷ Total assets
= 100 × ÷ =
2 Click competitor name to see calculations.
The Return on Assets (ROA) exhibited a volatile pattern over the five-year period. Initially negative, the ROA trended downwards before recovering to positive values in later years. This suggests a significant shift in the company’s ability to generate earnings from its asset base.
- ROA Trend (2021-2025)
- In 2021, the ROA stood at -6.87%. This figure deteriorated substantially in 2022, reaching -13.94%, indicating a considerable decline in profitability relative to assets. The ROA remained negative in 2023, although it improved to -5.15%, suggesting a lessening of losses. A positive turning point was observed in 2024, with the ROA reaching 0.96%. This positive trend continued into 2025, with the ROA increasing to 4.76%, demonstrating a substantial improvement in asset utilization and profitability.
The movement from negative to positive ROA correlates with the progression from net losses to net income. The substantial increase in total assets throughout the period did not initially translate into improved profitability, as evidenced by the deepening negative ROA in 2022. However, the subsequent positive ROA values in 2024 and 2025 indicate that the company began to effectively leverage its growing asset base to generate earnings.
- Net Income and ROA Relationship
- The relationship between net income and ROA is direct. The negative net income figures for 2021, 2022, and 2023 directly contributed to the negative ROA values for those years. The positive net income reported in 2024 and 2025 were instrumental in driving the ROA into positive territory and achieving continued growth.
The increasing ROA from 2023 to 2025 suggests improving operational efficiency and/or more effective asset management. Further investigation would be required to determine the specific drivers behind this improvement, such as changes in revenue generation, cost control, or asset turnover.