Duolingo Inc (DUOL)

Total asset turnover

		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
Revenue (ttm)	US$ in thousands	748,024	689,459	634,489	583,001	531,109	483,948	442,389	403,936	369,495	338,685	306,215	276,632	250,772	226,026	207,736	188,944	161,696
Total assets	US$ in thousands	1,301,730	1,219,550	1,139,440	1,068,670	964,229	870,714	834,803	790,379	747,347	713,699	701,050	684,511	661,311	617,777	181,693	176,874	175,739
Total asset turnover		0.57	0.57	0.56	0.55	0.55	0.56	0.53	0.51	0.49	0.47	0.44	0.40	0.38	0.37	1.14	1.07	0.92

December 31, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $748,024K ÷ $1,301,730K
= 0.57

The total asset turnover of Duolingo Inc has shown fluctuations over the period from December 31, 2020, to December 31, 2024. The ratio, which represents the efficiency of the company's asset utilization in generating sales, started at 0.92 in December 31, 2020, indicating that for every dollar of assets, the company generated $0.92 of revenue.

Subsequently, there was an improvement in the total asset turnover, reaching a peak of 1.14 on June 30, 2021, which suggests that the company was generating $1.14 in revenue for every dollar of assets owned. However, there was a significant decline in efficiency by September 30, 2021, with a total asset turnover of only 0.37, signaling a decrease in revenue generation relative to asset base.

The ratio remained relatively low in the following periods but started to show a gradual increase from March 31, 2022, onwards. By December 31, 2024, the total asset turnover had reached 0.57, highlighting a moderate improvement in asset utilization efficiency compared to the previous periods.

Overall, Duolingo Inc's total asset turnover demonstrates fluctuations in asset utilization efficiency over the analyzed period, with varying levels of revenue generated per unit of assets held. Further analysis is recommended to understand the factors driving these changes and to assess the company's overall financial performance and operational effectiveness.