DoorDash, Inc. Class A Common Stock (DASH)

Interest coverage

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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 222,000 -38,000 -244,000 -459,000 -469,000 -577,000 -1,146,000 -1,341,000 -1,401,000 -1,399,000 -893,000 -691,000 -519,000 -449,000 -598,000 -530,000 -399,000 -426,000 -259,000
Interest expense (ttm) US$ in thousands 0 0 151,000 151,000 151,000 152,000 2,000 11,000 12,000 12,000 12,000 3,000 3,000 14,000 23,000 32,000 40,000 32,000 26,000
Interest coverage -1.62 -3.04 -3.11 -3.80 -573.00 -121.91 -116.75 -116.58 -74.42 -230.33 -173.00 -32.07 -26.00 -16.56 -9.98 -13.31 -9.96

March 31, 2025 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $222,000K ÷ $0K
= —

The interest coverage ratio for DoorDash, Inc. Class A Common Stock exhibits a persistently negative value across all reported periods, indicating the company's inability to meet its interest obligations from its earnings before interest and taxes (EBIT). Starting from September 30, 2020, the ratio has shown a consistent and significant decline, with values worsening over time. Specifically, the ratio moved from -9.96 in September 2020 to an extreme low of -573.00 as of September 30, 2023.

A negative interest coverage ratio suggests that the company's operating income is insufficient to cover interest expenses, implying ongoing difficulties in generating enough earnings to service debt obligations. The magnitudes of the negative figures, especially during the period from March 2022 to September 2023, reflect a deteriorating financial condition, possibly due to a combination of high interest expenses, declining profitability, or substantial operational losses.

Notably, there is a marked improvement starting from December 31, 2023, where the ratio shifts from large negative values to a much less severe -3.80. This trend continues into early 2024, reaching -3.11 in March, and further improving to -1.62 by September 2024. The transition from highly negative to near-zero levels indicates a significant reduction in interest expenses relative to operating earnings, or potentially improved operational performance or restructuring efforts.

Overall, the historical data underscores a period of substantial financial distress, characterized by negative earnings that cannot sustain interest obligations, indicating highly leveraged and risky financial positioning. The recent improvement may suggest early signs of operational or financial recovery, but the overall interest coverage remains precariously low, emphasizing ongoing financial vulnerability.


See also:

DoorDash, Inc. Class A Common Stock Interest Coverage (Quarterly Data)