DoorDash, Inc. Class A Common Stock (DASH)

Return on assets (ROA)

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020
Net income (ttm)	US$ in thousands	339,000	123,000	-172,000	-407,000	-420,000	-559,000	-1,047,000	-1,270,000	-1,363,000	-1,362,000	-875,000	-680,000	-519,000	-468,000	-625,000	-567,000	-442,000	-461,000	-283,000
Total assets	US$ in thousands	13,572,000	12,845,000	12,277,000	11,837,000	11,450,000	10,839,000	10,013,000	9,601,000	9,646,000	9,789,000	9,552,000	9,928,000	6,822,000	6,809,000	6,358,000	6,182,000	5,902,000	6,353,000	2,874,000
ROA		2.50%	0.96%	-1.40%	-3.44%	-3.67%	-5.16%	-10.46%	-13.23%	-14.13%	-13.91%	-9.16%	-6.85%	-7.61%	-6.87%	-9.83%	-9.17%	-7.49%	-7.26%	-9.85%

March 31, 2025 calculation

ROA = Net income (ttm) ÷ Total assets
= $339,000K ÷ $13,572,000K
= 2.50%

The analysis of DoorDash, Inc. Class A Common Stock's return on assets (ROA) over the period from September 2020 to March 2025 reveals a significant trajectory of improvement. Initially, the ROA during September 2020 was recorded at -9.85%, indicating the company was experiencing losses relative to its assets. Throughout the subsequent quarters, the ROA remained negative, with fluctuations that reflected ongoing challenges, such as a decline to -13.91% by December 2022 and a further deterioration to -14.13% by March 2023. During this time, the company struggled to generate positive returns from its asset base, which is typical in high-growth or expansion-phase technology firms still working towards profitability.

Despite persistent negative ROA figures, there is a notable trend towards recovery beginning in late 2023. The ROA improves from a low of -13.91% at the end of 2022 to -10.46% in September 2023. This upward movement continues into 2024, with the ROA turning positive at 0.96% by December 2024, and further increasing to 2.50% by March 2025. This transition from negative to positive ROA indicates that the company is increasingly effective at utilizing its assets to generate net income, reflecting an improving profitability trend.

Overall, the progression of DoorDash's ROA suggests a strategic shift towards operational efficiency and profitability, culminating in a positive return on assets by the first quarter of 2025. This trend may be attributed to factors such as cost management improvements, scaling efficiencies, or revenue growth strategies that are beginning to bear fruit.