Duolingo Inc (DUOL)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 72.44% | 72.58% | 72.72% | 72.85% | 73.01% | 73.28% | 73.02% | 72.91% | 73.09% | 72.95% | 72.77% | 72.65% | 72.41% | 72.53% | 72.50% | 72.06% | 71.56% |
| Operating profit margin | 8.41% | 7.81% | 5.61% | 2.01% | -2.50% | -7.48% | -11.69% | -15.32% | -17.64% | -19.03% | -23.84% | -21.13% | -23.93% | -23.52% | -13.25% | -14.27% | -9.90% |
| Pretax margin | 13.68% | 13.79% | 11.45% | 7.95% | 3.35% | -2.18% | -7.21% | -12.18% | -15.87% | -18.55% | -23.96% | -21.19% | -23.91% | -23.42% | -13.08% | -14.26% | -9.71% |
| Net profit margin | 11.84% | 12.59% | 10.44% | 7.82% | 3.03% | -2.06% | -7.06% | -12.38% | -16.12% | -18.65% | -24.06% | -21.26% | -23.98% | -23.46% | -13.11% | -14.30% | -9.76% |
Duolingo Inc's profitability ratios have shown positive trends over the periods under consideration. The gross profit margin has been consistently increasing from 71.56% in December 2020 to 72.44% in December 2024, indicating the company's efficient production and pricing strategies.
However, the company experienced negative operating profit margins in the earlier periods, but this trend reversed from March 2023 onwards, reaching 8.41% in December 2024. This improvement suggests that Duolingo has been effectively managing its operating expenses and generating profits from its core operations.
Similarly, the pretax margin and net profit margin also showed increasing trends over the years, reaching 13.68% and 11.84% respectively by December 2024. These improvements reflect Duolingo's ability to control pre-tax and after-tax profitability, resulting in enhanced bottom-line performance.
Overall, Duolingo Inc has demonstrated strong improvements in its profitability ratios, showing signs of efficient cost management and revenue generation over the periods analyzed.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 6.80% | 7.12% | 5.81% | 4.27% | 1.67% | -1.15% | -3.74% | -6.33% | -7.97% | -8.85% | -10.51% | -8.59% | -9.09% | -8.58% | -14.99% | -15.27% | -8.98% |
| Return on total capital | 5.99% | 4.90% | 4.66% | 1.68% | -1.97% | -5.81% | -8.58% | -10.87% | -11.97% | -12.04% | -13.82% | -11.22% | -11.70% | -10.42% | — | — | — |
| Return on equity (ROE) | 10.74% | 10.55% | 8.64% | 6.41% | 2.45% | -1.62% | -5.24% | -8.85% | -10.99% | -11.83% | -13.95% | -11.30% | -11.72% | -10.38% | — | — | — |
Duolingo Inc's profitability ratios have shown some improvement over the recent quarters.
1. Operating return on assets (Operating ROA) has improved from a low of -15.25% in March 2021 to a positive 3.12% in June 2024. This suggests that the company has been more efficient in generating operating profits from its assets over time.
2. Return on assets (ROA) also demonstrated improvement, moving from a negative -15.27% in March 2021 to a positive 6.80% in December 2024. This indicates that the company has become more effective in generating profits from its total assets.
3. Return on total capital started at a negative level and then gradually improved to reach 5.99% in December 2024. This signifies that the company has been able to generate a better return on its total invested capital over the period analyzed.
4. Return on equity (ROE) has shown consistent improvement, moving from negative levels to reach 10.74% in December 2024. This suggests that Duolingo has been successful in enhancing shareholder value through profitability.
Overall, Duolingo Inc's profitability ratios reflect a positive trend, indicating improved efficiency and effectiveness in generating profits from its assets and capital over the analyzed period.