Duolingo Inc (DUOL)

Return on assets (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
Net income (ttm)	US$ in thousands	45,605	16,067	-9,980	-31,232	-50,002	-59,574	-63,161	-73,686	-58,817
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
ROA		4.27%	1.68%	-1.15%	-3.74%	-6.33%	-7.97%	-8.85%	-10.51%	-8.59%

March 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $45,605K ÷ $1,068,670K
= 4.27%

Duolingo Inc's return on assets (ROA) has shown an improving trend over the past quarters. From negative ROA figures in the first half of 2022 (-10.51% in Jun 2022), the company has managed to gradually increase its ROA to 4.27% in Mar 2024, indicating a positive return on its assets.

This improvement suggests that Duolingo is becoming more efficient in generating profits relative to its asset base. A rising ROA reflects the company's ability to utilize its assets effectively to generate earnings, which is a positive indicator for investors and stakeholders.

Overall, the positive trend in Duolingo's ROA signals potential growth and financial stability for the company, indicating that it is moving in the right direction in terms of profitability and asset utilization. Further monitoring of ROA performance will be key to assessing Duolingo's operational efficiency and financial health.