Duolingo Inc (DUOL)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 73.28% | 73.24% | 73.28% | 73.02% | 72.91% | 73.09% | 72.95% | 72.77% | 72.65% |
| Operating profit margin | 2.01% | -2.50% | -7.48% | -11.69% | -15.32% | -17.64% | -19.03% | -23.84% | -21.13% |
| Pretax margin | 7.95% | 3.35% | -2.18% | -7.21% | -12.18% | -15.87% | -18.55% | -23.96% | -21.19% |
| Net profit margin | 7.82% | 3.03% | -2.06% | -7.06% | -12.38% | -16.12% | -18.65% | -24.06% | -21.26% |
Duolingo Inc's profitability ratios indicate varying levels of performance over the past few quarters. The gross profit margin has remained relatively stable, ranging from 72.65% to 73.28%, suggesting the company has been able to maintain a strong control over its production costs and generate healthy profits from its core operations.
However, the operating profit margin has displayed more volatility, with significant fluctuations from positive 2.01% to negative 23.84% over the same period. This indicates that Duolingo has experienced challenges in managing its operating expenses and optimizing its operational efficiency.
On a positive note, the pretax margin and net profit margin have shown improvement in recent quarters, with positive figures reported in the most recent quarter. This suggests that Duolingo has been more successful in managing its income tax expenses and generating profitability after accounting for all costs.
Overall, Duolingo's profitability ratios highlight both strengths and weaknesses in its financial performance, emphasizing the importance of closely monitoring and managing both operational and profitability metrics to ensure sustainable growth and success.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.09% | -1.39% | -4.16% | -6.19% | -7.83% | -8.72% | -9.03% | -10.41% | -8.54% |
| Return on assets (ROA) | 4.27% | 1.68% | -1.15% | -3.74% | -6.33% | -7.97% | -8.85% | -10.51% | -8.59% |
| Return on total capital | 1.65% | -2.02% | -5.89% | -8.67% | -10.95% | -12.03% | -12.07% | -13.82% | -11.22% |
| Return on equity (ROE) | 6.41% | 2.45% | -1.62% | -5.24% | -8.85% | -10.99% | -11.83% | -13.95% | -11.30% |
Duolingo Inc's profitability ratios have shown some volatility over the past several quarters. The Operating return on assets (Operating ROA) has fluctuated between positive and negative values, with a recent positive trend, indicating the company's ability to generate operating income relative to its total assets. Return on assets (ROA) also demonstrates variability, with positive values in recent quarters, suggesting the company's efficiency in generating profit from its assets.
Return on total capital has been negative in all quarters, indicating that Duolingo is not effectively generating returns on its total invested capital, including both debt and equity. Return on equity (ROE) has shown similar fluctuations, but with positive values, indicating the company's ability to generate returns for its shareholders, though not consistently.
Overall, Duolingo's profitability ratios reflect a mixed performance, with some positive trends in efficiency and returns on assets but challenges in generating returns on total capital and equity. The company may need to focus on optimizing its capital structure and improving overall profitability to enhance shareholder value.