DoorDash, Inc. Class A Common Stock (DASH)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 4,019,000 | 2,656,000 | 1,977,000 | 2,504,000 | 4,345,000 |
| Short-term investments | US$ in thousands | 1,322,000 | 1,422,000 | 1,544,000 | 1,253,000 | 514,000 |
| Total current liabilities | US$ in thousands | 4,438,000 | 3,410,000 | 2,544,000 | 1,760,000 | 1,402,000 |
| Cash ratio | 1.20 | 1.20 | 1.38 | 2.13 | 3.47 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($4,019,000K
+ $1,322,000K)
÷ $4,438,000K
= 1.20
The cash ratio of DoorDash, Inc. Class A Common Stock has exhibited a declining trend over the period from December 31, 2020, to December 31, 2024. Specifically, the ratio was 3.47 at the end of 2020, indicating a strong liquidity position with cash and cash equivalents covering a significant portion of current liabilities. By the end of 2021, the ratio decreased to 2.13, reflecting a reduction in liquidity, although the company still maintained a relatively conservative cash buffer relative to its current liabilities.
This downward trajectory continued through 2022 and 2023, with the cash ratio tightening to 1.38 and then further to 1.20, respectively. The stable value of 1.20 observed at the end of both 2023 and 2024 suggests that the company's cash reserves still approximately cover its current liabilities, but the margin has narrowed considerably compared to the initial level in 2020.
Overall, the consistent decline in the cash ratio over these years indicates a gradual reduction in DoorDash’s liquidity buffer, which may be attributable to increased current liabilities, significant capital expenditures, operational investments, or shifts in its cash and short-term cash equivalents. Nonetheless, the ratio remaining around or above 1.0 suggests the company has maintained a basic level of liquidity, capable of meeting its short-term obligations solely with its cash and cash equivalents, albeit with less margin than in earlier periods.
Peer comparison
Dec 31, 2024