DoorDash, Inc. (NASDAQ:DASH)

Receivables Turnover

The receivables turnover ratio demonstrated fluctuations over the observed periods. Initially, the ratio experienced a moderate increase from approximately 16.4 to above 20 between early 2022 and the middle of 2023. However, starting from late 2023, a gradual decline is evident, with the ratio decreasing consistently down to around 14 by the end of the forecasted period in 2025. This pattern suggests an initial improvement in the efficiency of collecting receivables followed by a prolonged slowdown, indicating a potential extension in the time required for collections or a possible decline in sales relative to receivables.

Payables Turnover

The payables turnover ratio exhibited higher volatility throughout the timeframe. There was a notable spike in late 2022 and mid-2023, where the ratio peaked significantly above 20 and even reached around 31 in mid-2024. After this peak, the ratio decreased substantially but showed a moderate rebound near the end of the period to about 24. The fluctuations suggest variability in the rate at which the company is paying its suppliers, with periods of faster payment followed by stretches of slower payment. This variability could reflect changes in supplier terms, cash management strategies, or operational cycles.

Working Capital Turnover

A sustained upward trend in working capital turnover is observed from early 2022 to mid-2023, rising from just under 2 to above 4. This indicates an increasingly efficient use of working capital to generate sales during that period. Despite some fluctuations afterward, the ratio remained relatively stable between 2.3 and 3.9 throughout the later quarters, with a slight decline toward the end of the forecast. This pattern suggests the company generally improved working capital management, increasing its sales generation efficiency, although some deceleration appears in the final stages.

Average Receivable Collection Period

The average number of days to collect receivables fell steadily from 22 days in early 2022 to a low of 18 days by mid-2023, illustrating improved collection efficiency. Beginning in late 2023, the collection period started increasing gradually, peaking at around 26 days by late 2025. This reflects a reversal in collection efficiency potentially tied to customer payment delays or changes in credit policies, paralleling the downward trend in receivables turnover observed in the latter periods.

Average Payables Payment Period

The average payables payment period showed significant variability, initially trending downward from 29 to 12 days between early 2022 and late 2023, indicating faster payments to suppliers. Subsequently, the payment period increased again, reaching approximately 21 days in 2024 and early 2025, before shortening once more to about 15 days by late 2025. These oscillations imply changing supplier payment practices, potentially influenced by negotiated terms, liquidity management decisions, or operational constraints.

The financial data reveals several notable trends over the observed quarters concerning revenue, accounts receivable, and receivables turnover.

Revenue

There is a consistent upward trajectory in revenue across all quarters. Starting at US$1,456 million in Q1 2022, revenue steadily increased each quarter, reaching US$3,446 million by Q3 2025. The growth trend demonstrates sustained expansion, with no quarters showing a decline, indicating strong sales performance and market demand over the period.

Accounts Receivable, Net

The net accounts receivable balance also shows a rising trend, though with some fluctuations in earlier periods. From US$321 million in Q1 2022, the figure progresses upward to US$894 million by Q3 2025. The increase is particularly notable starting from Q4 2022, where a sharper rise is observed, suggesting either increased credit sales or extended collection periods. This growth may reflect the company's expanding revenue base or changes in credit policies.

Receivables Turnover

The receivables turnover ratio exhibits variability throughout the quarters. Initially, it fluctuates between approximately 16.3 and 18.75 from Q1 2022 through Q3 2023, indicating relatively efficient collection practices. However, from Q4 2023 onward, there is a gradual decline in this ratio, reaching around 14.13 by Q3 2025. This decreasing turnover suggests that receivables are being collected more slowly in recent periods, potentially signaling longer payment cycles or increased credit risk.

In summary, revenue growth remains strong and consistent, while accounts receivable balances increase in alignment with revenue but at a pace that results in a decreasing receivables turnover ratio. This trend may warrant closer monitoring of credit management and collection efficiency to ensure that escalating receivables do not adversely impact cash flow or financial stability.

The financial data from the recent quarterly periods reveals several notable trends related to cost management and payables activity.

Cost of Revenue, Exclusive of Depreciation and Amortization

The cost of revenue has exhibited a consistent upward trajectory over the observed quarters. Starting at approximately $763 million in the first quarter of 2022, it steadily increased to $1.687 billion by the third quarter of 2025. This represents more than a doubling of costs over the period. The increases appear gradual and sustained, with no significant quarter-to-quarter declines or plateaus, suggesting escalating operational expenses or expansion in the scale of revenue-generating activities.

Accounts Payable

Accounts payable balances show a more irregular pattern compared to cost of revenue. Initially fluctuating moderately between roughly $157 million and $238 million in the 2022 period, payables experienced a marked increase during late 2024 and early 2025 quarters, surpassing $320 million and peaking above $345 million in mid-2025 before decreasing to $257 million in the most recent quarter. This fluctuation might reflect changes in supplier payment terms, timing differences in settling payables, or inventory and procurement management adjustments.

Payables Turnover Ratio

The payables turnover ratio has demonstrated significant variability, with values ranging from 12.5 to over 31 times annually. Higher turnover ratios indicate faster payment to suppliers, while lower values suggest longer payment periods. The ratio spiked notably in late 2022 and mid-2023, reaching levels above 29 and 31, indicative of accelerated payments during those times. However, these peaks were followed by a reduction to around 17 in early 2025, and then rising again to approximately 24 by the latest quarter. Such volatility may signal shifting cash management strategies or supplier negotiations impacting payment schedules.

In summary, the data reflects growing operational costs aligned with the rising cost of revenue, while accounts payable and payables turnover ratios point toward dynamic management of supplier payments. These shifts could be responses to changing business volumes or deliberate financial strategy adjustments related to working capital optimization.

The financial data reveals several key trends in the quarterly performance over the reported periods. An analysis of working capital, revenue, and working capital turnover provides insights into the company's operational efficiency and growth trajectory.

Working Capital

Working capital exhibited a fluctuating trend initially, starting from 2,658 million USD and initially dipping to 1,879 million USD by mid-2023. Thereafter, it displayed a robust upward movement, reaching 5,361 million USD by the third quarter of 2025. This significant increase in recent quarters suggests improved liquidity and a larger buffer to meet short-term obligations.

Revenue

Revenue showed a consistent upward trajectory throughout the periods measured. Starting at 1,456 million USD, revenue grew steadily to 3,446 million USD by the third quarter of 2025. This growth indicates strong sales performance and successful expansion efforts across the quarters.

Working Capital Turnover Ratio

The working capital turnover ratio initially increased significantly from 1.98 to a peak of 4.09 in the second quarter of 2023, indicating enhanced efficiency in using working capital to generate revenue. However, from that peak, the ratio declined steadily to approximately 2.36 by the last two reported quarters in 2025. This decline suggests that, despite rising revenues, working capital has grown at a faster pace, causing a reduction in the turnover ratio, which may imply a decrease in operational efficiency relative to the capital employed.

In summary, the company experienced strong revenue growth complemented by a substantial increase in working capital in recent quarters. While early improvements in working capital turnover showed increased efficiency, more recent data indicates a moderation in this efficiency metric. This shift may warrant further review to understand the underlying causes and to maintain optimal use of capital for supporting continued growth.

Receivables Turnover

The receivables turnover ratio fluctuated over the analyzed periods, initially around 16.4 in early 2022, increasing to a peak of 20.07 in mid-2023. Following this peak, the ratio declined steadily through late 2023 and 2024, reaching approximately 14.13 by the third quarter of 2025. This trend indicates that the efficiency in collecting receivables improved through mid-2023 but weakened progressively afterward.

Average Receivable Collection Period

The average receivable collection period exhibited inverse dynamics relative to the receivables turnover. Starting at 22 days in early 2022, it decreased to 18 days by mid-2023, reflecting faster collection of receivables. However, from late 2023 onward, the period extended again, reaching 26 days by the third quarter of 2025, signifying a slower collection cycle over the latter periods.

Overall Analysis

The pattern suggests a period of improved receivables management and collection efficiency through mid-2023, followed by a gradual reversal. The decrease in turnover ratio and corresponding increase in collection days in the subsequent periods may signal emerging challenges in credit management or changes in customer payment behavior. Monitoring these trends is advisable to address potential liquidity implications.

The analysis of the payables-related financial ratios over the observed periods reveals notable fluctuations and trends, indicating changes in the company's payment practices and vendor relationship management.

Payables Turnover Ratio

The payables turnover ratio exhibits substantial variability across the reported quarters. Beginning at 12.5 in March 2022, it generally trends upward, reaching peaks of 29.36 in September 2023 and 31.29 in June 2024. These peaks are interspersed with notable dips, such as 17.26 in December 2024. This indicates periods of accelerated payment to suppliers contrasted with intervals of slower turnover. The volatility suggests the company adjusts its payables strategy frequently, possibly responding to liquidity management needs or supplier negotiations.

Average Payables Payment Period (Days)

This metric inversely correlates with the payables turnover ratio, reflecting the average time taken to settle payables. Starting at 29 days in March 2022, there is a general downward trend reaching a low around 12 days in several intervals such as September 2023 and June 2024. However, there are intermittent periods of lengthening payment terms, for instance, 21 days recorded in late 2024 and mid-2025. This indicates fluctuating payment cycles, with instances of both accelerated payments to suppliers and extended credit periods.

Overall Trends and Insights

The data suggests the company manages its payables dynamically, likely balancing between maintaining good supplier relations through prompt payments and optimizing cash flow by extending payment terms when possible. Periods of high turnover ratio and shorter payment periods correspond to quicker settlements, enhancing supplier confidence but potentially straining cash resources. Conversely, longer payables periods might help conserve cash but could impact supplier relationships if prolonged excessively.

In summary, the company demonstrates a strategic approach to payables management, adjusting payment timing in response to operational or financial considerations. The fluctuating pattern of both ratios signals active liquidity management and negotiation flexibility in supplier terms throughout the observed periods.