Duolingo Inc (DUOL)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 88,574 | 16,067 | -59,574 | -60,135 | -15,776 |
| Total assets | US$ in thousands | 1,301,730 | 953,957 | 747,347 | 661,311 | 175,739 |
| ROA | 6.80% | 1.68% | -7.97% | -9.09% | -8.98% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $88,574K ÷ $1,301,730K
= 6.80%
Duolingo Inc's return on assets (ROA) has shown a significant improvement over the years based on the provided data.
As of December 31, 2020, the company had a negative ROA of -8.98%, indicating that the company was not efficiently utilizing its assets to generate earnings. This negative trend continued into December 31, 2021, with a ROA of -9.09%.
However, the company's performance started to turn around in December 31, 2022, with the ROA improving to -7.97%. This suggests that Duolingo Inc was making progress in increasing its profitability relative to its assets.
The positive momentum continued into December 31, 2023, where the ROA turned positive at 1.68%, indicating that the company was able to generate earnings efficiently from its assets. This trend further strengthened in December 31, 2024, with a ROA of 6.80%, indicating a significant improvement in profitability and asset utilization.
Overall, Duolingo Inc's ROA has shown a positive trajectory, reflecting the company's efforts to enhance operational efficiency and profitability over the years. Continued monitoring of the ROA will be essential to assess the company's performance in utilizing its assets effectively to generate returns for its shareholders.
Peer comparison
Dec 31, 2024