Duolingo Inc (DUOL)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	11,699	-13,259	-36,206	-51,698	-61,867	-65,195	-64,458	-72,996	-58,440
Total assets	US$ in thousands	1,068,670	953,957	870,714	834,803	790,379	747,347	713,699	701,050	684,511	661,311	617,777	181,693
Operating ROA		1.09%	-1.39%	-4.16%	-6.19%	-7.83%	-8.72%	-9.03%	-10.41%	-8.54%

March 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $11,699K ÷ $1,068,670K
= 1.09%

Duolingo Inc's operating return on assets (ROA) has shown a fluctuating trend over the past several quarters, indicating varying levels of operating performance efficiency. The operating ROA was positive at 1.09% as of March 31, 2024, which suggests that the company generated a modest return on its operating assets during that period. In contrast, the operating ROA was negative in the preceding quarters, reaching its lowest point at -10.41% as of June 30, 2022.

The negative operating ROA figures from December 2022 to March 2024 indicate that Duolingo Inc was not effectively utilizing its assets to generate operating income during those periods. This could be attributed to factors such as high operating expenses, declining sales, or inefficient asset utilization.

Overall, the trend in Duolingo Inc's operating ROA signals the company's evolving operational efficiency and financial performance. It is essential for the company to focus on improving its operating ROA to enhance profitability and ensure sustainable growth in the future.