Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
DoorDash, Inc., profitability ratios
Based on: 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), 10-K (reporting date: 2020-12-31).
- Gross profit margin
- The gross profit margin exhibited a declining trend from 52.6% in 2020 to 45.5% in 2022, indicating a reduction in the core profitability of the company's sales during this period. From 2022 onward, the margin improved, reaching 48.31% in 2024, suggesting a recovery in cost management or pricing power.
- Operating profit margin
- The operating profit margin, while consistently negative, showed significant volatility. It improved from -15.11% in 2020 to -9.25% in 2021, then deteriorated sharply to -17.07% in 2022. After 2022, a marked improvement occurred, reducing the operating loss to -0.35% by 2024, indicating tighter control over operating expenses or improved operational efficiency.
- Net profit margin
- Net profit margin followed a pattern similar to operating margin, with substantial losses starting at -15.97% in 2020, improving moderately in 2021, then worsening to -20.74% in 2022. From 2023 onwards, the net margin showed a clear recovery, turning positive to 1.15% in 2024, reflecting overall profitability improvement after persistent losses.
- Return on equity (ROE)
- ROE declined steadily from -9.81% in 2020 to a low of -20.21% in 2022, indicating increased net losses relative to shareholder equity. Similar to other profitability indicators, ROE improved after 2022, reaching a positive level of 1.58% by 2024, signaling a return to effective value generation for shareholders.
- Return on assets (ROA)
- ROA showed a declining trend from -7.26% in 2020 to -13.94% in 2022, implying deteriorating efficiency in using assets to generate profits. However, this trend reversed between 2023 and 2024, with ROA improving sharply to a positive 0.96%, suggesting better asset utilization and profitability.
Return on Sales
Return on Investment
Gross Profit Margin
DoorDash, Inc., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross profit | 5,180) | 4,046) | 2,995) | 2,550) | 1,518) | |
| Revenue | 10,722) | 8,635) | 6,583) | 4,888) | 2,886) | |
| Profitability Ratio | ||||||
| Gross profit margin1 | 48.31% | 46.86% | 45.50% | 52.17% | 52.60% | |
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Airbnb Inc. | 83.08% | 82.83% | 82.15% | 80.71% | 74.07% | |
| Chipotle Mexican Grill Inc. | 26.67% | 26.20% | 23.88% | 22.62% | 17.40% | |
| McDonald’s Corp. | 56.75% | 57.12% | 56.97% | 54.17% | 50.77% | |
| Starbucks Corp. | 26.84% | 27.37% | 25.96% | 28.87% | 21.51% | |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Gross profit margin = 100 × Gross profit ÷ Revenue
= 100 × 5,180 ÷ 10,722 = 48.31%
2 Click competitor name to see calculations.
- Revenue
- There is a clear upward trend in revenue over the five-year period. Starting at 2,886 million US dollars in 2020, revenue increased significantly each year, reaching 10,722 million US dollars by 2024. This represents a substantial growth, indicating expanding sales or market presence.
- Gross Profit
- Gross profit also shows a consistent increase throughout the period. Beginning at 1,518 million US dollars in 2020, it rose steadily to 5,180 million US dollars in 2024. The growth in gross profit is aligned with the revenue increase, suggesting effective cost management or improved product/service pricing.
- Gross Profit Margin
- The gross profit margin exhibits some fluctuation. It started at 52.6% in 2020 and slightly decreased to 52.17% in 2021. However, in 2022, there was a notable decline to 45.5%, which partially recovered in the following years to 46.86% in 2023 and further to 48.31% in 2024. Despite the mid-period dip, the margin remains relatively high, indicating sustained profitability.
- Overall Insights
- The data demonstrates robust financial growth driven primarily by increasing revenue and gross profit figures. While gross profit margin saw a reduction in the middle years, the gradual recovery implies improved operational efficiencies or strategic adjustments. The company appears to be expanding its financial base while maintaining a healthy level of profitability.
Operating Profit Margin
DoorDash, Inc., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Loss from operations | (38) | (579) | (1,124) | (452) | (436) | |
| Revenue | 10,722) | 8,635) | 6,583) | 4,888) | 2,886) | |
| Profitability Ratio | ||||||
| Operating profit margin1 | -0.35% | -6.71% | -17.07% | -9.25% | -15.11% | |
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Airbnb Inc. | 23.00% | 15.31% | 21.45% | 7.17% | -106.27% | |
| Booking Holdings Inc. | 31.83% | 27.31% | 29.85% | 22.78% | -9.28% | |
| Chipotle Mexican Grill Inc. | 16.94% | 15.78% | 13.44% | 10.67% | 4.85% | |
| McDonald’s Corp. | 45.19% | 45.68% | 40.42% | 44.59% | 38.13% | |
| Starbucks Corp. | 14.95% | 16.32% | 14.32% | 16.77% | 6.64% | |
| Operating Profit Margin, Sector | ||||||
| Consumer Services | 24.47% | 23.23% | 21.77% | 22.66% | 7.32% | |
| Operating Profit Margin, Industry | ||||||
| Consumer Discretionary | 10.96% | 9.02% | 8.35% | 8.71% | 6.42% | |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Operating profit margin = 100 × Loss from operations ÷ Revenue
= 100 × -38 ÷ 10,722 = -0.35%
2 Click competitor name to see calculations.
The financial data reveals several notable trends concerning revenue, operational losses, and profitability margins over the five-year period.
- Revenue
-
There is a consistent and significant upward trend in revenue from 2020 through 2024. Revenue increased from US$2,886 million in 2020 to US$10,722 million in 2024. This represents a nearly fourfold increase, indicating strong top-line growth over the period assessed.
- Loss from Operations
-
Despite the growth in revenue, the company experienced losses from operations every year. These losses increased from -US$436 million in 2020 to a peak of -US$1,124 million in 2022. Subsequently, the losses decreased substantially to -US$38 million by 2024, showing a marked improvement in operational efficiency or cost control after 2022.
- Operating Profit Margin
-
The operating profit margin, reflecting the ratio of operating profit to revenue, remained negative throughout the period, indicating ongoing operating losses despite revenue growth. The margin improved from -15.11% in 2020 to -0.35% in 2024. The margin deteriorated significantly in 2022 (to -17.07%) before improving steadily over the following two years.
Overall, the data show strong revenue growth accompanied initially by increasing operational losses and worsening profit margins, peaking in 2022. However, from 2022 onwards, there is a clear trend towards reducing losses and narrowing profitability gaps, suggesting improved operational management and cost efficiency despite the absence of positive operating income by 2024.
Net Profit Margin
DoorDash, Inc., net profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to DoorDash, Inc. common stockholders | 123) | (558) | (1,365) | (468) | (461) | |
| Revenue | 10,722) | 8,635) | 6,583) | 4,888) | 2,886) | |
| Profitability Ratio | ||||||
| Net profit margin1 | 1.15% | -6.46% | -20.74% | -9.57% | -15.97% | |
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Airbnb Inc. | 23.85% | 48.32% | 22.54% | -5.88% | -135.71% | |
| Booking Holdings Inc. | 24.78% | 20.07% | 17.89% | 10.63% | 0.87% | |
| Chipotle Mexican Grill Inc. | 13.56% | 12.45% | 10.41% | 8.65% | 5.94% | |
| McDonald’s Corp. | 31.72% | 33.22% | 26.65% | 32.49% | 24.63% | |
| Starbucks Corp. | 10.40% | 11.46% | 10.18% | 14.45% | 3.95% | |
| Net Profit Margin, Sector | ||||||
| Consumer Services | 18.64% | 20.08% | 14.50% | 15.60% | 1.66% | |
| Net Profit Margin, Industry | ||||||
| Consumer Discretionary | 8.69% | 7.84% | 5.02% | 9.12% | 5.18% | |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Net profit margin = 100 × Net income (loss) attributable to DoorDash, Inc. common stockholders ÷ Revenue
= 100 × 123 ÷ 10,722 = 1.15%
2 Click competitor name to see calculations.
The financial data over the five-year period reveals several noteworthy trends. Revenue demonstrates consistent and substantial growth, increasing from $2,886 million in 2020 to $10,722 million in 2024. This upward trajectory indicates expanding business operations and potentially increasing market share.
Net income attributable to common stockholders has experienced significant fluctuations. Initially, losses were recorded in 2020 and 2021, with net losses of $461 million and $468 million, respectively. The loss significantly deepened in 2022, reaching $1,365 million. However, there was substantive improvement in the following years, with losses reduced to $558 million in 2023 and transitioning to a positive net income of $123 million by 2024. This pattern suggests phases of investment or operational challenges, followed by a return to profitability.
The net profit margin reflects a similar trajectory. Negative margins dominated from 2020 through 2023, starting at -15.97% in 2020 and worsening to -20.74% in 2022, before improving to -6.46% in 2023. By 2024, the margin turned positive at 1.15%, corroborating the improved net income performance and suggesting enhanced operational efficiencies or better cost control relative to revenue growth.
- Revenue Growth
- Consistent annual increases, showing strong expansion from $2.9 billion to $10.7 billion over five years.
- Net Income Trends
- Initial and substantial losses peaked in 2022, with marked recovery in 2023 and profitability achieved in 2024.
- Profit Margin Evolution
- Persistent negative margins early on improved steadily, culminating in a slight positive margin by 2024.
Return on Equity (ROE)
DoorDash, Inc., ROE calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to DoorDash, Inc. common stockholders | 123) | (558) | (1,365) | (468) | (461) | |
| Stockholders’ equity | 7,803) | 6,806) | 6,754) | 4,667) | 4,700) | |
| Profitability Ratio | ||||||
| ROE1 | 1.58% | -8.20% | -20.21% | -10.03% | -9.81% | |
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Airbnb Inc. | 31.48% | 58.69% | 34.05% | -7.37% | -158.00% | |
| Booking Holdings Inc. | — | — | 109.92% | 18.86% | 1.21% | |
| Chipotle Mexican Grill Inc. | 41.97% | 40.13% | 37.97% | 28.42% | 17.61% | |
| McDonald’s Corp. | — | — | — | — | — | |
| Starbucks Corp. | — | — | — | — | — | |
| ROE, Sector | ||||||
| Consumer Services | 481.49% | 863.51% | 506.32% | 159.36% | — | |
| ROE, Industry | ||||||
| Consumer Discretionary | 27.93% | 29.93% | 20.78% | 33.71% | 24.49% | |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
ROE = 100 × Net income (loss) attributable to DoorDash, Inc. common stockholders ÷ Stockholders’ equity
= 100 × 123 ÷ 7,803 = 1.58%
2 Click competitor name to see calculations.
- Net Income (Loss) Attributable to Common Stockholders
- The net income shows a fluctuating pattern with an overall improving trend towards the end of the period. Initially, the company experienced losses of -461 million USD in 2020 and -468 million USD in 2021. The loss significantly deepened in 2022, reaching -1,365 million USD. However, in 2023, losses decreased to -558 million USD, and by 2024, the company reported a positive net income of 123 million USD, indicating a turnaround from previous years' negative performance.
- Stockholders’ Equity
- Stockholders’ equity displayed a general upward trajectory, increasing from 4,700 million USD in 2020 to 7,803 million USD in 2024. Despite a minor decrease between 2020 and 2021, equity rose substantially in 2022 and continued growing moderately through 2023 and 2024, reflecting overall strengthening in the company's net asset base.
- Return on Equity (ROE)
- ROE metrics were consistently negative from 2020 through 2023, reflecting unprofitable operations relative to shareholder equity. The ROE started at -9.81% in 2020 and worsened to -20.21% in 2022. By 2023, the loss impact lessened, with ROE improving to -8.2%. In 2024, the company achieved a positive ROE of 1.58%, signaling improved profitability and a likely more efficient use of equity capital.
- Summary of Trends and Insights
- The financial data demonstrate an initially challenging period marked by substantial losses that intensified in 2022 but began to recover in the following years. The consistent rise in stockholders’ equity alongside the shift from negative to positive net income and ROE in 2024 highlights a transition towards financial stabilization and profitability. These trends suggest operational improvements, better cost management, or increased revenue generation resulting in a more favorable financial position by the end of the analyzed period.
Return on Assets (ROA)
DoorDash, Inc., ROA calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net income (loss) attributable to DoorDash, Inc. common stockholders | 123) | (558) | (1,365) | (468) | (461) | |
| Total assets | 12,845) | 10,839) | 9,789) | 6,809) | 6,353) | |
| Profitability Ratio | ||||||
| ROA1 | 0.96% | -5.15% | -13.94% | -6.87% | -7.26% | |
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Airbnb Inc. | 12.63% | 23.21% | 11.80% | -2.57% | -43.70% | |
| Booking Holdings Inc. | 21.23% | 17.62% | 12.06% | 4.93% | 0.27% | |
| Chipotle Mexican Grill Inc. | 16.67% | 15.27% | 12.98% | 9.81% | 5.95% | |
| McDonald’s Corp. | 14.90% | 15.08% | 12.25% | 14.01% | 8.99% | |
| Starbucks Corp. | 12.00% | 14.01% | 11.73% | 13.38% | 3.16% | |
| ROA, Sector | ||||||
| Consumer Services | 14.10% | 14.95% | 10.21% | 9.37% | 0.81% | |
| ROA, Industry | ||||||
| Consumer Discretionary | 8.12% | 7.57% | 4.81% | 7.99% | 4.36% | |
Based on: 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), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
ROA = 100 × Net income (loss) attributable to DoorDash, Inc. common stockholders ÷ Total assets
= 100 × 123 ÷ 12,845 = 0.96%
2 Click competitor name to see calculations.
- Net Income (Loss) Attributable to Common Stockholders
- The net income figures demonstrate a loss over most years, starting with a loss of $461 million in 2020 and slightly increasing in loss to $468 million in 2021. There was a significant deterioration in 2022 with a loss of $1,365 million, which then improved to a loss of $558 million in 2023. In 2024, the company returned to profitability with a net income of $123 million.
- Total Assets
- Total assets steadily increased across the entire period, rising from $6,353 million in 2020 to $12,845 million in 2024. The growth trend is consistent each year, showing the company’s expansion in asset base nearly doubling over the observed timeframe.
- Return on Assets (ROA)
- The ROA metric follows the net income trend, beginning with a negative return of -7.26% in 2020 and slightly improving to -6.87% in 2021. In 2022, ROA declined sharply to -13.94%, indicating a period of poor profitability relative to the asset base. There was a recovery in 2023 to -5.15%, and finally in 2024, ROA turned positive at 0.96%, reflecting improvements in asset utilization and profitability.
- Overall Analysis
- Throughout the period, the company experienced fluctuating profitability, marked by significant losses particularly in 2022. Despite these losses, the asset base expanded consistently, suggesting ongoing investment and growth. The positive shift in net income and ROA in 2024 indicates a potential turnaround and improved operational efficiency. However, the profit margin remains modest relative to asset size, implying cautious optimism going forward.