Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- 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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Short-term Activity Ratios (Summary)
DoorDash, Inc., short-term (operating) activity 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).
An examination of short-term operating activity ratios reveals several noteworthy trends between 2021 and 2025. Generally, the company demonstrates increasing efficiency in managing its payables, while receivables and overall working capital turnover exhibit more complex patterns.
- Receivables Turnover & Collection Period
- Receivables turnover initially increased from 14.01 in 2021 to 16.46 in 2022, suggesting improved efficiency in collecting receivables. However, this trend reversed, with turnover declining to 12.38 by 2025. Correspondingly, the average receivable collection period decreased from 26 days in 2021 to 22 days in 2022, then fluctuated before increasing to 29 days in 2025. This indicates a lengthening of the time required to collect on credit sales towards the end of the period, potentially signaling a weakening in credit control or changes in customer payment behavior.
- Payables Turnover & Payment Period
- Payables turnover increased significantly from 14.52 in 2021 to 22.85 in 2022, indicating the company paid its suppliers more frequently. While turnover decreased to 17.26 by 2024, it remained above the 2021 level. The average payables payment period decreased from 25 days in 2021 to 16 days in 2022, demonstrating an ability to take advantage of supplier credit terms. This period then gradually increased to 22 days by 2025, suggesting a slight relaxation of payment practices, though still remaining relatively efficient.
- Working Capital Turnover
- Working capital turnover experienced a substantial increase from 1.74 in 2021 to 3.95 in 2023, signifying improved efficiency in utilizing working capital to generate sales. While it decreased slightly to 3.64 in 2024, it continued to rise to 5.50 in 2025. This suggests a growing ability to generate revenue from its investments in current assets, and potentially more effective working capital management overall.
In summary, the company appears to have initially improved its efficiency in both collecting receivables and paying suppliers. However, a recent trend suggests a potential slowdown in receivable collection, while working capital turnover continues to improve, indicating a generally positive trend in overall operational efficiency.
Turnover Ratios
Average No. Days
Receivables Turnover
DoorDash, Inc., receivables turnover 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) | ||||||
| Revenue | ||||||
| Accounts receivable, net | ||||||
| Short-term Activity Ratio | ||||||
| Receivables turnover1 | ||||||
| Benchmarks | ||||||
| Receivables Turnover, Competitors2 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| Receivables Turnover, Sector | ||||||
| Consumer Services | ||||||
| Receivables Turnover, 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
Receivables turnover = Revenue ÷ Accounts receivable, net
= ÷ =
2 Click competitor name to see calculations.
The receivables turnover ratio exhibits a fluctuating pattern over the five-year period. Initially, the ratio increased, followed by a decline in later years. Revenue consistently increased throughout the period, while accounts receivable also increased, though not always in direct proportion to revenue growth.
- Receivables Turnover Trend
- The receivables turnover ratio rose from 14.01 in 2021 to 16.46 in 2022, indicating an improvement in the efficiency of collecting receivables. This suggests that, in 2022, the company was more effective at converting its credit sales into cash compared to 2021. The ratio then decreased slightly to 16.20 in 2023, followed by a more noticeable decline to 14.65 in 2024, and further to 12.38 in 2025. This downward trend suggests a lengthening of the collection period and potentially a less efficient collection process in the later years.
- Relationship to Revenue
- Revenue demonstrated consistent growth, increasing from US$4,888 million in 2021 to US$13,717 million in 2025. Accounts receivable also increased over the same period, rising from US$349 million to US$1,108 million. While both metrics grew, the rate of increase in accounts receivable appears to have outpaced the rate of revenue growth in the latter part of the period, contributing to the declining receivables turnover ratio.
- Implications
- The decreasing receivables turnover ratio in 2024 and 2025 warrants further investigation. Potential causes could include a change in credit terms offered to customers, a less effective credit control system, or an increase in the proportion of sales made on credit to customers with longer payment cycles. A sustained decline in this ratio could indicate a higher risk of bad debts and a potential need to review credit and collection policies.
Payables Turnover
DoorDash, Inc., payables turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Cost of revenue, exclusive of depreciation and amortization | ||||||
| Accounts payable | ||||||
| Short-term Activity Ratio | ||||||
| Payables turnover1 | ||||||
| Benchmarks | ||||||
| Payables Turnover, Competitors2 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| Payables Turnover, Sector | ||||||
| Consumer Services | ||||||
| Payables Turnover, 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
Payables turnover = Cost of revenue, exclusive of depreciation and amortization ÷ Accounts payable
= ÷ =
2 Click competitor name to see calculations.
The analysis reveals evolving trends in payables turnover alongside changes in associated financial items over a five-year period. Cost of revenue, exclusive of depreciation and amortization, demonstrates a consistent upward trajectory, increasing from US$2,338 million in 2021 to US$6,738 million in 2025. Accounts payable also increased over the period, though with more fluctuation, rising from US$161 million in 2021 to US$397 million in 2025.
- Payables Turnover
- Payables turnover exhibited an initial increase from 14.52 in 2021 to a peak of 22.85 in 2022. This suggests an improved efficiency in paying suppliers during that year. However, subsequent years show a declining trend, with the ratio decreasing to 21.25 in 2023, 17.26 in 2024, and further to 16.97 in 2025. This indicates a lengthening of the time taken to settle obligations to suppliers.
- The decrease in payables turnover from 2022 onwards, despite the continued growth in cost of revenue, suggests a potential shift in supplier relationships or payment terms. It could also indicate a deliberate strategy to manage cash flow by extending payment periods. Further investigation would be required to determine the underlying cause.
The combination of rising accounts payable and decreasing payables turnover suggests that the company is increasingly relying on trade credit, but is taking longer to utilize it. This dynamic warrants monitoring to assess its impact on supplier relationships and potential financing costs.
Working Capital Turnover
DoorDash, Inc., working capital turnover calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Current assets | ||||||
| Less: Current liabilities | ||||||
| Working capital | ||||||
| Revenue | ||||||
| Short-term Activity Ratio | ||||||
| Working capital turnover1 | ||||||
| Benchmarks | ||||||
| Working Capital Turnover, Competitors2 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| Working Capital Turnover, Sector | ||||||
| Consumer Services | ||||||
| Working Capital Turnover, 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
Working capital turnover = Revenue ÷ Working capital
= ÷ =
2 Click competitor name to see calculations.
The working capital turnover ratio demonstrates a clear upward trend over the five-year period. Initially, the ratio was 1.74 in 2021, indicating that for every dollar of working capital, the company generated $1.74 in revenue. Subsequent years show increasing efficiency in utilizing working capital to generate sales.
- Trend Analysis - Working Capital Turnover
- The ratio increased significantly to 3.03 in 2022, suggesting improved operational efficiency or a more effective management of current assets and liabilities. This positive trend continued into 2023, with the ratio reaching 3.95. While there was a slight decrease to 3.64 in 2024, the ratio still remained substantially higher than the 2021 level.
- The most substantial increase occurred between 2024 and 2025, with the ratio rising to 5.50. This indicates a considerable improvement in the company’s ability to generate revenue from its working capital investment during that period. The company is becoming increasingly efficient at converting its short-term assets and liabilities into sales.
The observed increases in the working capital turnover ratio align with the growth in revenue. Revenue increased consistently throughout the period, from $4,888 million in 2021 to $13,717 million in 2025. However, the growth in revenue outpaced the growth in working capital, contributing to the rising turnover ratio. While working capital fluctuated, it did not increase at the same rate as revenue.
- Working Capital and Revenue Relationship
- The relationship between working capital and revenue suggests that the company is effectively managing its short-term assets and liabilities to support its sales growth. The increasing turnover ratio implies that the company is minimizing its investment in working capital while simultaneously increasing revenue. This could be due to improved inventory management, faster collection of receivables, or more efficient management of payables.
In summary, the working capital turnover ratio indicates improving operational efficiency and a strengthening ability to generate revenue from its working capital investment. The substantial increase in the ratio from 2021 to 2025 suggests a positive trend in the company’s short-term financial performance.
Average Receivable Collection Period
DoorDash, Inc., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Receivables turnover | ||||||
| Short-term Activity Ratio (no. days) | ||||||
| Average receivable collection period1 | ||||||
| Benchmarks (no. days) | ||||||
| Average Receivable Collection Period, Competitors2 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| Average Receivable Collection Period, Sector | ||||||
| Consumer Services | ||||||
| Average Receivable Collection Period, 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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
The average receivable collection period exhibited a generally increasing trend over the five-year period. While fluctuations occurred, the metric moved from 26 days in 2021 to 29 days in 2025. This suggests a lengthening in the time required to collect outstanding receivables.
- Receivables Turnover & Collection Period Relationship
- An inverse relationship exists between receivables turnover and the average collection period, as expected. As receivables turnover decreased from 14.01 in 2021 to 12.38 in 2025, the average collection period correspondingly increased from 26 to 29 days. This indicates that the company is collecting receivables less frequently over time.
The average collection period experienced a decrease from 26 days in 2021 to a low of 22 days in 2022. However, this improvement was not sustained. The period then increased to 23 days in 2023, 25 days in 2024, and ultimately reached 29 days in 2025. This suggests potential shifts in credit policies, customer payment behavior, or collection efforts.
- Trend Analysis
- The most significant change occurred between 2024 and 2025, with a four-day increase in the average collection period. This represents the largest single-year increase throughout the observed period and warrants further investigation.
The decreasing receivables turnover, coupled with the increasing average collection period, could indicate a potential slowdown in the efficiency of converting receivables into cash. Monitoring these trends is crucial for maintaining healthy cash flow and assessing the effectiveness of credit and collection processes.
Average Payables Payment Period
DoorDash, Inc., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||
| Payables turnover | ||||||
| Short-term Activity Ratio (no. days) | ||||||
| Average payables payment period1 | ||||||
| Benchmarks (no. days) | ||||||
| Average Payables Payment Period, Competitors2 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| Average Payables Payment Period, Sector | ||||||
| Consumer Services | ||||||
| Average Payables Payment Period, 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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
The analysis reveals evolving trends in the company’s management of its payables over a five-year period. Specifically, the payables turnover ratio and the average payables payment period demonstrate distinct patterns that warrant attention.
- Payables Turnover
- The payables turnover ratio increased notably from 14.52 in 2021 to 22.85 in 2022, indicating a more efficient use of credit from suppliers. However, this ratio subsequently decreased to 21.25 in 2023, and continued a downward trend, reaching 17.26 in 2024 and 16.97 in 2025. This suggests a slowing in the rate at which the company pays its suppliers in the later years of the observed period.
- Average Payables Payment Period
- Correspondingly, the average payables payment period decreased from 25 days in 2021 to 16 days in 2022, aligning with the increased payables turnover. Following this, the payment period remained relatively stable at 17 days in 2023, before increasing to 21 days in 2024 and 22 days in 2025. This increase indicates the company is taking longer to settle its obligations to suppliers in recent years.
The observed trends suggest a shift in the company’s payables management strategy. While initially demonstrating improved efficiency in paying suppliers, the later period shows a lengthening of the payment period and a decrease in payables turnover. This could be due to a variety of factors, including changes in supplier negotiations, working capital management policies, or overall business conditions. Further investigation would be required to determine the underlying causes of these changes.