DoorDash, Inc. Class A Common Stock (DASH)

Cash conversion cycle

		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
Cash conversion cycle	days	8.31	33.67	51.07	0.93	15.46

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 29.45 – 21.14
= 8.31

The cash conversion cycle (CCC) of DoorDash, Inc. Class A Common Stock has demonstrated significant fluctuations over the observed period from December 31, 2020, to December 31, 2024. In 2020, the CCC was recorded at approximately 15.46 days, indicating a relatively short period between cash outflows for inventory and operations and cash inflows from customer payments. This suggests efficient management of operating cycles during that year.

In 2021, the CCC sharply declined to around 0.93 days, approaching near-zero, which signifies an almost immediate conversion of investments in receivables and inventory into cash. This improvement likely reflects enhanced operational efficiencies or changes in payment or collection practices, reducing the cash conversion cycle to minimal levels.

However, in 2022, the CCC increased substantially to approximately 51.07 days, indicating a lengthening of the cycle and a potential delay in cash inflows relative to outflows. This trend may have resulted from changes in customer payment terms, bulk order processing delays, or supplier payment schedules, which temporarily impacted cash flow dynamics.

By 2023, the CCC decreased again to roughly 33.67 days, showing an improvement from the peak in 2022 but still remaining somewhat elevated. This might underscore ongoing adjustments in operational or financial policies aimed at optimizing cash flow timeliness.

In 2024, the CCC further reduced to approximately 8.31 days, approaching levels observed earlier in the period. This suggests a significant improvement in the company's cash cycle management, potentially through improved receivables collection, faster order processing, or better supplier payment strategies, leading to more efficient cash utilization.

Overall, the observed fluctuations reflect periods of operational adjustments and strategic shifts in managing receivables, payables, and inventory. The trend towards a shorter cash conversion cycle in 2024 indicates an enhancement in cash flow efficiency, which is a positive sign of operational stability and liquidity management.