Duolingo Inc (DUOL)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Operating income | US$ in thousands | -13,259 | -65,195 | -60,007 |
| Total assets | US$ in thousands | 953,957 | 747,347 | 661,311 |
| Operating ROA | -1.39% | -8.72% | -9.07% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-13,259K ÷ $953,957K
= -1.39%
Duolingo Inc's operating return on assets (ROA) improved significantly over the three-year period from 2021 to 2023. In 2021, the operating ROA was -9.07%, indicating that the company was operating at a loss relative to its assets. This improved in 2022 to -8.72%, but was still in negative territory. The most significant improvement was seen in 2023, where the operating ROA improved to -1.39%, signaling a closer approach to breakeven.
It is important to note that while the trend shows a positive improvement in the operating ROA, Duolingo Inc is still operating at a loss when considering its assets. This indicates that the company may still have operational inefficiencies or challenges that need to be addressed to improve profitability and efficiency in the utilization of its assets. Further analysis of the company's operational performance and strategies may help in understanding the factors contributing to these results.
Peer comparison
Dec 31, 2023