Duolingo Inc (DUOL)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 62,932 | 53,845 | 35,601 | 11,699 | -13,259 | -36,206 | -51,698 | -61,867 | -65,195 | -64,458 | -72,996 | -58,440 | -60,007 | -53,163 | -27,530 | -26,970 | -16,011 |
| 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 |
| Operating ROA | 4.83% | 4.42% | 3.12% | 1.09% | -1.38% | -4.16% | -6.19% | -7.83% | -8.72% | -9.03% | -10.41% | -8.54% | -9.07% | -8.61% | -15.15% | -15.25% | -9.11% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $62,932K ÷ $1,301,730K
= 4.83%
Duolingo Inc's operating return on assets (operating ROA) experienced fluctuations over the provided time period. The ratio started in negative territory at the end of 2020, indicating that the company was not generating a profit from its operational activities relative to its assets. Throughout 2021 and the first half of 2022, the operating ROA remained negative, suggesting inefficiency in asset utilization.
However, starting from the first quarter of 2023, there was a noticeable improvement in the operating ROA, transitioning from negative to positive values. This improvement indicates that Duolingo Inc began to generate profits from its core operations relative to its assets, signaling better operational efficiency and asset utilization.
By the end of 2024, the operating ROA reached 4.83%, indicating that for every dollar of assets the company utilized, it generated a profit of approximately 4.83 cents. This positive trend in the operating ROA showcases Duolingo Inc's ability to effectively generate returns from its operational activities and optimize asset utilization, which is a positive sign for the company's financial performance.
In conclusion, the analysis of Duolingo Inc's operating ROA demonstrates a significant turnaround from negative values to positive territory, reflecting improvements in operational efficiency and profitability over the specified time frame.
Peer comparison
Dec 31, 2024