DoorDash, Inc. Class A Common Stock (DASH)

Interest coverage

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	-38,000	-577,000	-1,032,000	-449,000	-426,000
Interest expense	US$ in thousands	—	152,000	2,000	14,000	32,000
Interest coverage		—	-3.80	-516.00	-32.07	-13.31

December 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $-38,000K ÷ $—K
= —

The interest coverage ratio for DoorDash, Inc. Class A Common Stock exhibits a concerning trend over the observed period from December 31, 2020, through December 31, 2024. Specifically, the ratios for the years 2020 through 2023 are all negative, indicating that the company's earnings before interest and taxes (EBIT) were insufficient to cover interest expenses on its debt during these years.

In detail, the interest coverage was -13.31 in 2020, worsening markedly to -32.07 in 2021, and further declining sharply to -516.00 in 2022. Although there is slight improvement in 2023, the ratio remains highly negative at -3.80. For 2024, data is unavailable or not reported.

A negative interest coverage ratio signifies that the company's operating earnings are not adequate to meet interest obligations, reflecting significant financial distress and an inability to generate sufficient operating income. The severe deterioration observed in 2022 suggests a substantial decline in profitability or a substantial increase in interest expenses relative to operating income during that period. The partial recovery in 2023, although still negative, indicates some reduction in the magnitude of the problem but continues to be a major concern for financial stability.

Overall, these figures reflect a severe lack of operational profitability relative to debt servicing requirements, which raises questions about the company's debt sustainability and financial health. Such persistent negative interest coverage ratios can restrict access to new financing and heighten financial risk, potentially impacting the company's ability to continue operations without restructuring or significant operational turnaround.