DoorDash, Inc. Class A Common Stock (DASH)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.62 | 1.65 | 1.62 | 1.65 | 1.64 | 1.59 | 1.53 | 1.50 | 1.48 | 1.45 | 1.40 | 1.34 | 1.47 | 1.46 | 1.36 | 1.34 | 1.30 | 1.35 | 2.01 |
The analysis of DoorDash, Inc. Class A Common Stock's solvency ratios, based on the provided data, indicates a consistent pattern of minimal or nonexistent leverage for the period examined. Notably, across all reporting dates from September 30, 2020, through March 31, 2025, the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio were uniformly reported as zero. This uniformity suggests that the company has not employed external debt financing during this period, and its capital structure appears to be entirely equity-based.
The financial leverage ratio, however, presents a different perspective. Starting at 2.01 on September 30, 2020, it exhibits variability over time, with values decreasing to 1.30 by March 31, 2021, and then generally trending upward afterwards. By March 31, 2025, the ratio has increased to approximately 1.62, indicating a modest increase in financial leverage as time progresses, though not necessarily correlating directly with debt levels given the absence of reported debt.
Overall, the data suggests that DoorDash has maintained a debt-free capital structure over the observed period. The rising financial leverage ratio indicates that the company might be relying more on internal financing or equity issuance rather than debt, reflecting potentially conservative financial management or strategic choice to remain debt-free. This pattern minimizes solvency risk related to debt obligations but also implies that the company may be less leveraged to finance expansion or operational needs via debt-based leverage.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratios for DoorDash, Inc. Class A Common Stock demonstrate a persistently negative trend over the analyzed period, indicative of substantial challenges in covering interest expenses from earnings before interest and taxes (EBIT).
From September 30, 2020, through September 30, 2021, the ratios ranged from approximately -9.96 to -26.00, reflecting significant earnings shortfalls relative to interest obligations. This consistent negative positioning underscores that the company's operating earnings were insufficient to meet interest payments, implying reliance on external funding or financing activities to sustain operations.
The situation worsened markedly between December 31, 2021, and September 30, 2022, with ratios plunging as low as -230.33, further emphasizing the scale of operating losses or negative EBIT that could not support interest expenses. The magnitude of these negative ratios suggests extremely limited or non-existent earnings capacity to cover interest, raising concerns over financial stability and debt sustainability.
Post-September 2022, there is evidence of some progress toward improved interest coverage ratios. By December 31, 2023, the ratio had improved significantly to approximately -3.80, approaching a near breakeven point, which indicates a reduction in loss severity or improved operating earnings relative to interest obligations. The subsequent quarters of 2024 show continued gradual improvement, with ratios nearing -3.04 and -1.62 respectively, reflecting ongoing efforts to enhance earnings or reduce interest burden.
Despite these improvements, the ratios remain negative throughout the observed period, signifying that DoorDash has chronically been unable to generate sufficient operating income to cover its interest expenses entirely. The diminishing extent of negative ratios suggests some positive developments in profitability or cost management, but the firm’s interest coverage remains inadequate, indicating ongoing financial vulnerability in terms of debt servicing capability.
Moreover, data for December 2024 and beyond is unavailable or incomplete, precluding definitive conclusions for the future trajectory but emphasizing the importance of monitoring further financial performance for signs of sustained improvement.
In summary, the interest coverage ratios over the analyzed period reveal a persistent inability of DoorDash, Inc. to reliably service its interest obligations from earnings, with a notable deterioration during 2021-2022, followed by a gradual, albeit incomplete, recovery. The negative ratios highlight inherent financial risks and underscore the company's ongoing challenges in achieving operational profitability sufficient to cover interest expenses.
See also:
DoorDash, Inc. Class A Common Stock Solvency Ratios (Quarterly Data)