DoorDash, Inc. Class A Common Stock (DASH)

Payables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	5,542,000	4,589,000	3,588,000	2,338,000	1,368,000
Payables	US$ in thousands	321,000	216,000	157,000	161,000	80,000
Payables turnover		17.26	21.25	22.85	14.52	17.10

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $5,542,000K ÷ $321,000K
= 17.26

The payables turnover ratio for DoorDash, Inc. Class A Common Stock reflects how efficiently the company manages its accounts payable by indicating the number of times accounts payable are paid off during a period. An analysis of the provided data from December 31, 2020, through December 31, 2024, reveals the following trends:

In 2020, the payables turnover was 17.10, signifying that the company settled its payables approximately 17 times during that year. Moving into 2021, the ratio decreased to 14.52, suggesting a slight lengthening in the payables payment cycle, which could indicate either extended payment terms or slower payments to suppliers.

By 2022, the ratio increased markedly to 22.85, indicating a significant acceleration in settling accounts payable, likely reflecting improved payment efficiency or more favorable payment terms negotiated with suppliers. This peak in the ratio also suggests a tightening of the company's payable management.

In 2023, the ratio slightly declined to 21.25, though it remained relatively high, maintaining a high level of payables turnover consistent with efficient management practices. The marginal decrease might be attributable to changes in procurement practices or supplier negotiations.

By 2024, the ratio decreased further to 17.26, approaching the 2020 level but still indicating a relatively high frequency of paying off liabilities compared to the previous year. This reduction may suggest a slight elongation of the payables period, possibly due to strategic changes in cash management policies or supplier negotiations.

Overall, the fluctuations in DoorDash’s payables turnover ratios over these years indicate a pattern of variable payment cycles, with a notable peak in 2022. The data suggests that the company has generally maintained a high level of efficiency in managing its accounts payable, with periods of both acceleration and slight deceleration. The variations may be influenced by strategic operational decisions, supplier relationships, or broader financial management policies.