DoorDash, Inc. Class A Common Stock (DASH)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 48.31% | 46.86% | 45.50% | 52.17% | 52.60% |
| Operating profit margin | -0.35% | -6.71% | -15.68% | -9.25% | -15.11% |
| Pretax margin | 1.45% | -6.18% | -21.25% | -9.47% | -15.87% |
| Net profit margin | 1.15% | -6.46% | -20.78% | -9.57% | -15.97% |
An analysis of DoorDash, Inc. Class A Common Stock's profitability ratios from December 31, 2020, to December 31, 2024, reveals several notable trends over this period.
Gross Profit Margin: The gross profit margin demonstrated relative stability from 2020 through 2021, maintaining levels around 52%, indicating consistent revenue remaining after cost of goods sold (COGS). However, there was a decline in 2022 to approximately 45.50%, suggesting increased COGS or operational inefficiencies. Subsequently, the margin improved in 2023 to 46.86% and further increased in 2024 to 48.31%, indicating a partial recovery in efficiency or cost management improvements.
Operating Profit Margin: The operating profit margin remained negative throughout the period, though it showed a trend toward narrowing losses. The margin improved from -15.11% in 2020 to -9.25% in 2021, demonstrating reduced operating losses. However, it fell again in 2022 to -15.68%. In 2023, the margin improved significantly to -6.71%, and further to -0.35% in 2024, nearing a break-even point and signaling enhanced operational efficiency.
Pretax Margin: Consistent with operating margin trends, the pretax margin was negative from 2020 to 2023, with a sharp decline in 2022 to -21.25%. The significant improvement in 2023 to -6.18% and turning positive in 2024 to 1.45% indicate that the company successfully reduced its losses before taxes, ultimately achieving profitability at the pretax level in 2024.
Net Profit Margin: Similar to pretax margins, DoorDash's net profit margin was negative in all recorded years up to 2023. The margin narrowed from -15.97% in 2020 through -9.57% in 2021, with a further decline to -20.78% in 2022. The margin improved markedly in 2023 to -6.46%, and for the first time in the period, turned positive at 1.15% in 2024. This shift into profitability at the net level indicates significant improvement in overall profitability, cost management, and operational efficiencies by the end of 2024.
Overall, the profitability ratios over this period reflect a trajectory of gradual recovery from consistent losses. The company has shown particular strength in shifting from negative to positive margins at the pretax and net profit levels by 2024, which suggests a meaningful improvement in profitability. However, operational efficiencies and gross profit margins continue to be areas of focus for sustained profitability improvements.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -0.30% | -5.34% | -10.54% | -6.64% | -6.86% |
| Return on assets (ROA) | 0.96% | -5.15% | -13.97% | -6.87% | -7.26% |
| Return on total capital | -0.49% | -8.48% | -15.28% | -9.62% | -9.06% |
| Return on equity (ROE) | 1.58% | -8.20% | -20.25% | -10.03% | -9.81% |
The analysis of DoorDash, Inc. Class A Common Stock profitability ratios from December 31, 2020, through December 31, 2024, reveals notable trends in the company’s financial performance over this period.
Starting with Operating Return on Assets (Operating ROA), the data indicates an ongoing negative profitability, although the deficit has gradually narrowed over time. Specifically, Operating ROA improved from -6.86% in 2020 to -6.64% in 2021, then declined further to -10.54% in 2022, before showing signs of recovery in subsequent years, reaching -5.34% in 2023, and significantly improving to -0.30% in 2024. This progression suggests that the company's core operating efficiency has been improving, nearing break-even levels in the latest year.
Return on Assets (ROA), reflecting broader profitability including non-operating factors, exhibits a similar pattern. It was negative in all observed years, starting at -7.26% in 2020 and slightly improving to -6.87% in 2021. However, a substantial decline occurred in 2022, with ROA dropping to -13.97%, indicating increased losses relative to total assets. Emerging from this downturn, ROA improved significantly in 2023 to -5.15% and turned positive in 2024, reaching 0.96%, signaling a possible turn towards profitability.
Return on Total Capital (ROTC) follows a comparable trend, remaining negative throughout the period. It deteriorated from -9.06% in 2020 to -9.62% in 2021, then worsened markedly to -15.28% in 2022. The subsequent years show improvement as ROTC reduces to -8.48% in 2023 and further to -0.49% in 2024, indicating an incremental return towards efficiency in capital utilization.
The Return on Equity (ROE) demonstrates the most pronounced fluctuations. It was negative in all years, with a minor downturn from -9.81% in 2020 to -10.03% in 2021, then a significant decline to -20.25% in 2022. In 2023, ROE improved to -8.20%, and notably, in 2024, it reached a positive 1.58%, crossing into profitability territory. This suggests that shareholder equity became increasingly productive and that the company is approaching a sustainable profit phase.
In summary, while DoorDash's profitability ratios have been negative for the majority of the examined period, recent developments indicate a meaningful recovery. The significant improvement in 2024 across all ratios, culminating in the transition to positive ROA and ROE, points to a potential shift towards profitability and enhanced operational efficiency.