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 operating profit margin exhibited significant fluctuation over the five-year period. Initially negative, the margin demonstrated improvement before declining again, ultimately approaching breakeven by the final year.
- Operating Profit Margin Trend
- In 2020, the operating profit margin was -15.11%. This represents a substantial loss on each dollar of revenue. The margin improved to -9.25% in 2021, indicating a reduction in operational losses relative to revenue. However, 2022 saw a considerable deterioration, with the margin falling to -17.07%, the lowest point in the observed period. A positive shift occurred in 2023, as the margin rose to -6.71%, suggesting improved operational efficiency or cost control. This positive trend continued into 2024, with the margin reaching -0.35%, indicating a near-breakeven operational performance.
The movement in the operating profit margin correlates with the reported loss from operations. Larger losses from operations consistently resulted in more negative operating profit margins. The decreasing loss from operations in 2023 and 2024 directly contributed to the improvement in the operating profit margin.
- Revenue and Operating Profit Margin Relationship
- Revenue increased consistently throughout the period, from US$2,886 million in 2020 to US$10,722 million in 2024. Despite this revenue growth, the company struggled to translate increased sales into positive operating profits until 2024. The substantial revenue increase in 2022 did not prevent a worsening of the operating profit margin, suggesting that cost increases or other operational challenges offset the benefits of higher sales. The final year demonstrates a potential turning point, where revenue growth is beginning to contribute to improved profitability.
The trend suggests a potential shift towards improved operational efficiency and profitability. While still negative, the operating profit margin’s movement towards zero in 2024 indicates a positive trajectory, contingent on continued revenue growth and effective cost management.
Net Profit Margin
DoorDash, Inc., net profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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 net profit margin exhibited significant fluctuations over the five-year period. Initially negative, the metric trended towards improvement, culminating in a positive value in the most recent year.
- Net Profit Margin Trend
- From 2020 to 2021, the net profit margin improved from -15.97% to -9.57%. This indicates a reduction in the net loss as a percentage of revenue. However, 2022 saw a substantial deterioration, with the net profit margin declining to -20.74%, representing the lowest value within the observed timeframe.
- A partial recovery occurred in 2023, as the net profit margin increased to -6.46%. This suggests some improvement in profitability, though the company remained unprofitable overall. The most recent year, 2024, marked a turning point, with the net profit margin becoming positive at 1.15%.
The movement in net income (loss) attributable to DoorDash, Inc. common stockholders closely mirrors the net profit margin trend. Substantial net losses were recorded in 2020, 2021, and 2022, followed by a reduced loss in 2023 and ultimately a net income in 2024.
- Revenue and Net Profit Margin Relationship
- Revenue consistently increased throughout the period, rising from US$2,886 million in 2020 to US$10,722 million in 2024. Despite this revenue growth, the company struggled to translate sales into profit until 2024. The positive correlation between revenue and net income in 2024 suggests improved operational efficiency or cost management alongside revenue expansion.
The substantial swing from a net loss to net income in 2024, reflected in the positive net profit margin, warrants further investigation to determine the underlying drivers of this change. Factors such as cost control measures, increased pricing power, or shifts in the competitive landscape could be contributing factors.
Return on Equity (ROE)
DoorDash, Inc., ROE calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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.
The Return on Equity (ROE) exhibited significant fluctuations over the five-year period. Initially negative, ROE trended downward before showing improvement in the most recent year.
- Net Income Impact
- Net income attributable to DoorDash, Inc. common stockholders was negative for the first four years of the observed period. The magnitude of the net loss increased substantially from 2020 to 2022, before decreasing in 2023. A positive net income was reported in 2024, contributing to the improvement in ROE.
- Stockholders’ Equity Trend
- Stockholders’ equity remained relatively stable between 2020 and 2021, then increased considerably in 2022 and 2023. Continued growth was observed in 2024, though at a slower pace than the prior year. This growth in equity partially offset the impact of negative net income on ROE in earlier periods.
- ROE Analysis
- ROE was negative from 2020 through 2023, reaching its lowest point in 2022 at -20.21%. The negative ROE values indicate that the company was not generating sufficient profit relative to shareholder investment during those years. A substantial improvement was seen in 2024, with ROE turning positive at 1.58%, signaling a potential shift towards improved profitability relative to equity.
The shift to positive ROE in 2024 is directly linked to the reported net income. While stockholders’ equity continued to grow, the positive earnings were the primary driver of the ROE improvement. Continued monitoring of both net income and equity will be crucial to assess the sustainability of this trend.
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.
The Return on Assets (ROA) exhibited a volatile pattern over the five-year period. Initially negative, the ROA demonstrated improvement, culminating in a positive value in the most recent year. This shift reflects changes in net income and total asset levels.
- Overall Trend
- The ROA began with a negative value of -7.26% in 2020 and remained negative through 2022, reaching a low of -13.94%. A substantial improvement is then observed in 2023, with the ROA increasing to -5.15%. This positive trend continued into 2024, resulting in a positive ROA of 0.96%.
- Net Income Impact
- Net income attributable to DoorDash, Inc. common stockholders was negative for the first four years of the period. The largest loss occurred in 2022, at US$1,365 million, which contributed to the lowest ROA that year. Net income turned positive in 2024, reaching US$123 million, and was the primary driver of the ROA improvement.
- Asset Base Impact
- Total assets increased consistently throughout the period, from US$6,353 million in 2020 to US$12,845 million in 2024. While asset growth generally contributes to a lower ROA when net income is negative, the significant increase in net income in 2024 overcame this effect, resulting in a positive ROA despite the larger asset base.
The progression from consistently negative ROA values to a positive value in 2024 suggests a strengthening of the company’s ability to generate earnings relative to its asset base. The turnaround is directly linked to the shift from net losses to net income.