Duolingo Inc (DUOL)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Net income | US$ in thousands | 16,067 | -59,574 | -60,135 |
| Total assets | US$ in thousands | 953,957 | 747,347 | 661,311 |
| ROA | 1.68% | -7.97% | -9.09% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $16,067K ÷ $953,957K
= 1.68%
Duolingo Inc's return on assets (ROA) has shown a positive trend over the three-year period from 2021 to 2023. In 2021, the ROA was -9.09%, indicating that the company had a negative return on its assets, possibly due to operational inefficiencies or financial challenges. However, by the end of 2022, the ROA improved significantly to -7.97%, although it still remained negative.
The most notable improvement in Duolingo Inc's performance is reflected in its ROA for the year ending 2023, which increased to 1.68%. This positive ROA suggests that the company effectively utilized its assets to generate profit during that period. The increase in ROA could be attributed to better operational efficiency, effective cost management, revenue growth, or a combination of these factors.
Overall, the improving trend in Duolingo Inc's ROA from negative values in 2021 and 2022 to a positive value in 2023 indicates that the company is making progress in leveraging its assets effectively to generate returns for its shareholders. This upward trajectory in ROA is a positive sign of the company's financial health and efficiency in asset utilization.
Peer comparison
Dec 31, 2023