DoorDash, Inc. Class A Common Stock (DASH)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	123,000	-558,000	-1,368,000	-468,000	-461,000
Total stockholders’ equity	US$ in thousands	7,803,000	6,806,000	6,754,000	4,667,000	4,700,000
ROE		1.58%	-8.20%	-20.25%	-10.03%	-9.81%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $123,000K ÷ $7,803,000K
= 1.58%

The analysis of DoorDash, Inc. Class A Common Stock's return on equity (ROE) over the specified period indicates notable fluctuations and a general trend of improvement in recent years. At the end of 2020, the company's ROE stood at -9.81%, reflecting a negative return on shareholders' equity, indicative of net losses relative to equity and potential challenges in profitability during that period. This negative trajectory persisted into 2021 and 2022, with ROE deteriorating further to -10.03% and -20.25%, respectively, suggesting worsening profitability or increased losses relative to shareholders' equity.

In 2023, a reversal of this negative trend is observed, with the ROE improving to -8.20%, indicating a reduction in losses and some operational progress, although it remained negative. The most notable development occurs in 2024, when the ROE turns positive at 1.58%, signifying that the company has achieved a positive net income in relation to shareholders' equity and has moved towards profitability from a return perspective.

Overall, the company's ROE demonstrates a pattern of initial losses with incremental improvements over time, culminating in a positive return in 2024. This progression reflects enhanced operational performance and margin refinement, although the early years' negative figures highlight ongoing challenges in achieving sustainable profitability.