Gross Margin % is calculated as gross profit divided by its revenue. DoorDash's Gross Profit for the
three
months ended in Dec. 2023 was $1,074 Mil. DoorDash's Revenue for the
three
months ended in Dec. 2023 was $2,303 Mil. Therefore, DoorDash's Gross Margin % for the quarter that ended in Dec. 2023 was 46.63%.
The historical rank and industry rank for DoorDash's Gross Margin % or its related term are showing as below:
DASH'
s Gross Margin % Range Over the Past 10 Years
Min: 21.65 Med: 46.18 Max: 52.6
Current: 46.86
During the past 6 years, the highestGross Margin % of DoorDash was 52.60%. The lowest was 21.65%. And the median was 46.18%.
DASH's Gross Margin % is ranked worse than 64.75% of 522
companies
in the Interactive Media industry
Industry Median: 60.98
vs DASH: 46.86
DoorDash had a gross margin of 46.63% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for DoorDash was 12.70% per year.
DoorDash Gross Margin % Historical Data
The historical data trend for DoorDash's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of DoorDash's Gross Margin %
For the Internet Content & Information subindustry, DoorDash's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
DoorDash's Gross Margin % Distribution in the Interactive Media Industry
For the Interactive Media industry and Communication Services sector, DoorDash's Gross Margin % distribution charts can be found below:
* The bar in red indicates where DoorDash's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
DoorDash (NAS:DASH) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
DoorDash had a gross margin of 46.63% for the quarter that ended in Dec. 2023 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
DoorDash Gross Margin % Related Terms
Thank you for viewing the detailed overview of DoorDash's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Founded in 2013 and headquartered in San Francisco, DoorDash is an online food order demand aggregator. Consumers can use its app to order food on-demand for pickup or delivery from merchants mainly in the U.S. Through the acquisition of Wolt in 2022, the firm also provides this service in Europe. DoorDashprovides a marketplace for the merchants to create a presence online, market their offerings, and meet demand by making the offerings available for pickup or delivery. The firm provides similar service to businesses in addition to restaurants, such as grocery, retail, pet supplies, and flowers. In 2022, the firm generated $53.4 billion in gross order volume (up 27% year over year) and $6.6 billion in revenue (up 35%).
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