Duolingo Inc (DUOL)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 62,595 | -13,259 | -65,195 | 51 | -16,011 |
| Total assets | US$ in thousands | 1,301,730 | 953,957 | 747,347 | 661,311 | 175,739 |
| Operating ROA | 4.81% | -1.39% | -8.72% | 0.01% | -9.11% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $62,595K ÷ $1,301,730K
= 4.81%
Duolingo Inc's operating return on assets (operating ROA) has fluctuated over the past five years. In December 2020, the company's operating ROA was at a negative 9.11%, indicating that the company was not effectively generating operating income from its assets. However, by December 2021, the operating ROA improved slightly to 0.01%, suggesting a small turnaround in the company's operational efficiency.
In December 2022, the operating ROA declined again to -8.72%, indicating a significant decrease in operating income generated from the company's assets. However, by December 2023, there was a slight improvement as the operating ROA improved to -1.39%, although it still remained in the negative territory.
The most notable improvement occurred by December 2024, where Duolingo Inc's operating ROA increased significantly to 4.81%. This indicates that the company was able to generate a positive return on its assets, signaling improved operational performance and efficiency.
Overall, Duolingo Inc's operating ROA has shown volatility in recent years, with significant fluctuations in performance. It is essential for the company to continue monitoring and improving its operational efficiency to sustain positive returns on its assets in the long term.
Peer comparison
Dec 31, 2024