DoorDash, Inc. Class A Common Stock (DASH)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover	—	12.89	8.14	—	—
Receivables turnover	12.40	16.20	16.46	14.01	9.92
Payables turnover	17.26	21.25	22.85	14.52	17.10
Working capital turnover	3.64	3.95	3.03	1.74	0.70

The activity ratios of DoorDash, Inc. Class A Common Stock over the specified fiscal years reflect notable trends in operational efficiency and working capital management.

Inventory Turnover:
Inventory turnover was not applicable or not available for the years ending December 31, 2020 and 2021. Starting from 2022, a finite value appears at 8.14, increasing further to 12.89 in 2023. This upward trend indicates a significant improvement in the company's efficiency in managing inventory or related assets, suggesting quicker liquidation or turnover of inventory-like assets, or a potential change in business model or reporting practices.

Receivables Turnover:
Receivables turnover displayed a steady and meaningful increase from 9.92 in 2020 to 14.01 in 2021, further rising to 16.46 in 2022. Although there was a slight decline to 16.20 in 2023, it remains substantially higher than previous years. The decrease in 2024 to 12.40 indicates a reduction in receivables collection efficiency, possibly due to changes in credit terms, customer base, or collection policies.

Payables Turnover:
Payables turnover experienced fluctuations but overall trended upward from 17.10 in 2020 to a peak of 22.85 in 2022. The figure decreased to 21.25 in 2023 and further declined to 17.26 in 2024. The initial increase suggests improved payment frequency to suppliers, while the subsequent decline indicates a potential extension of payment periods or shifts in supplier relationships.

Working Capital Turnover:
This ratio observed a consistent rise from 0.70 in 2020 to 3.95 in 2023, with a slight reduction to 3.64 in 2024. The increasing trend signifies improved efficiency in utilizing working capital to generate sales or revenue, reflecting enhanced operational liquidity management and asset utilization.

In summary, the activity ratios suggest that DoorDash has experienced substantial improvements in inventory and receivables management between 2020 and 2023, alongside increased efficiency in working capital utilization. The fluctuations in payables turnover reflect adaptive strategies in managing supplier payments. The decline in receivables turnover in 2024 warrants further examination, as it may impact overall liquidity and operational efficiency moving forward.

Average number of days

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Days of inventory on hand (DOH)	days	—	28.32	44.86	—	—
Days of sales outstanding (DSO)	days	29.45	22.53	22.18	26.06	36.80
Number of days of payables	days	21.14	17.18	15.97	25.13	21.35

The activity ratios for DoorDash, Inc. Class A Common Stock, as reflected in the provided data, demonstrate notable trends over the period from 2020 to 2024.

Days of Inventory on Hand (DOH):
The company did not report inventory days for 2020 and 2021, indicating minimal or no inventory holdings typical of a primarily service-oriented company. In 2022, the DOH was 44.86 days, suggesting a period where inventory, if applicable, or related assets took approximately 45 days to be liquidated or turned over. By 2023, this figure decreased significantly to 28.32 days, reflecting more efficient inventory or resource management. Data for 2024 is not available.

Days of Sales Outstanding (DSO):
The DSO decreased from 36.80 days in 2020 to 26.06 days in 2021, indicating improvements in receivables collection efficiency. This downward trend continued into 2022, reaching 22.18 days, with a slight marginal increase to 22.53 days in 2023. In 2024, the DSO increased further to 29.45 days, suggesting a modest decline in collection efficiency or changes in receivables management.

Number of Days of Payables:
The Days of Payables increased slightly from 21.35 days in 2020 to 25.13 days in 2021, implying a duration of payment to suppliers or vendors extended marginally. In 2022, this metric decreased to 15.97 days, indicating faster payments or improved cash flow management. Conversely, in 2023, the payables period increased again to 17.18 days. In 2024, the duration extended further to 21.14 days, approaching the earlier levels observed in 2021.

Overall, the data portrays a company that has experienced a reduction and stabilization in inventory or resource holding periods, significant improvements in receivables collection from 2020 to 2022, and some variability in payment practices. These trends collectively suggest operational adjustments aimed at optimizing cash flow and working capital management over the observed period.

Long-term

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Fixed asset turnover	—	—	6.14	6.62	6.99
Total asset turnover	0.83	0.80	0.67	0.72	0.45

The analysis of DoorDash, Inc. Class A Common Stock long-term activity ratios reveals insights into the company's efficiency in utilizing its fixed assets and total assets over the specified periods.

Fixed Asset Turnover Ratio:
- This ratio measures how effectively the company is deploying its fixed assets (such as property, plant, and equipment) to generate sales.
- The ratio decreased consistently from 6.99 on December 31, 2020, to 6.62 on December 31, 2021, and further declined to 6.14 on December 31, 2022.
- The declining trend suggests that the company's efficiency in leveraging its fixed assets to generate sales has slightly diminished over this period. This could indicate either increased investment in fixed assets not yet fully utilized or a relative slowdown in sales relative to fixed asset base.
- Data for December 31, 2023, and December 31, 2024, are unavailable, precluding the assessment of subsequent trends.

Total Asset Turnover Ratio:
- This ratio evaluates how well the company is utilizing all its assets to produce sales.
- The ratio increased from 0.45 on December 31, 2020, to 0.72 on December 31, 2021, indicating an improved efficiency in asset utilization.
- It subsequently declined slightly to 0.67 on December 31, 2022 but then increased again to 0.80 in 2023, and further to 0.83 in 2024.
- The upward trend in the latest years suggests an overall improvement in the company's ability to generate sales from its total asset base, indicating enhanced operational efficiency and potentially more effective asset management.

Overall, the long-term activity ratios reflect a mixed but progressively improving pattern in total asset utilization, especially in the most recent years. Meanwhile, fixed asset turnover shows a gradual decline, which may warrant further investigation into fixed asset management and capital investment strategies. These ratios collectively suggest that DoorDash has been increasingly effective in leveraging its total assets to generate sales, although efficiency in fixed asset utilization has experienced some decline over the analyzed period.