DoorDash, Inc. Class A Common Stock (DASH)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.65 | 1.59 | 1.45 | 1.46 | 1.35 |
The solvency ratios for DoorDash, Inc. Class A Common Stock from December 31, 2020, through December 31, 2024, reveal certain distinctive financial characteristics. The debt-to-assets ratio remains at zero across all periods, indicating that the company has not reported any debt relative to its total assets during this timeframe. Similarly, the debt-to-capital ratio and debt-to-equity ratio are both consistently zero, further confirming the absence of reported debt obligations in the company's capital structure throughout these years.
In contrast, the financial leverage ratio demonstrates a progressive increase over the period. Starting at 1.35 on December 31, 2020, it rises to 1.46 in 2021, then slightly decreases to 1.45 in 2022. Notably, it continues an upward trend to 1.59 in 2023 and reaches 1.65 in 2024. This increasing leverage ratio suggests a growing proportion of assets financed through liabilities or other leverage mechanisms, although the zero debt ratios imply that the leverage may be derived from other sources such as operating liabilities, leasing arrangements, or financial instruments not classified strictly as debt.
Overall, the data indicates that DoorDash has maintained an extremely conservative capital structure with no reported debt throughout the analyzed period. The rising financial leverage ratio might reflect changes in other balance sheet components or accounting treatments but does not indicate a traditional increase in debt-based leverage. Consequently, the company's solvency appears to rest on a debt-free foundation with a gradual uptake in leverage from non-debt sources.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | -3.80 | -516.00 | -32.07 | -13.31 |
The interest coverage ratios of DoorDash, Inc. Class A Common Stock over the specified periods reveal a pattern of significant financial challenges related to the company's ability to meet its interest obligations through its earnings before interest and taxes (EBIT).
In the fiscal year ending December 31, 2020, the interest coverage ratio was −13.31. This negative value indicates that the company's EBIT was insufficient to cover its interest expenses by a substantial margin, reflecting operating losses or negative earnings before interest and taxes. The situation deteriorated further in 2021, with the ratio declining to −32.07, suggesting a worsening inability to generate enough EBIT to cover interest expenses, thus highlighting increased financial strain or declining profitability.
The negative trend continued with the 2022 interest coverage ratio plunging to −516.00, implying that the company's EBIT was vastly inadequate relative to its interest obligations, possibly due to extremely high interest expenses, substantial operating losses, or both. This dramatic deterioration underscores severe financial distress or substantial operating setbacks during that period.
In 2023, the ratio improved markedly from the prior year, registering at −3.80. Although still negative, this indicates a substantial reduction in the extent of EBIT shortfall relative to interest expenses, signaling some improvement in the company's earnings capacity or a reduction in interest costs.
For the year ending December 31, 2024, data are not available, as indicated by the dash, suggesting that the financial statements or relevant data were not provided or finalized for that period. Therefore, an analysis of trends beyond 2023 cannot be asserted with certainty.
Overall, DoorDash, Inc. has exhibited persistent negative interest coverage ratios over the observed years, with a notable peak of distress in 2022. These ratios demonstrate that the company's earnings before interest and taxes have been insufficient to cover its interest obligations consistently, pointing toward ongoing financial difficulties related to profitability or operational efficiency. The partial recovery in 2023 offers some indication of a potential improvement, but the continued negative ratios highlight the company's ongoing challenges in managing its interest obligations without generating adequate earnings.