Duolingo Inc (DUOL)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Net income | US$ in thousands | 16,067 | -59,574 | -60,135 |
| Total stockholders’ equity | US$ in thousands | 655,501 | 542,078 | 513,056 |
| ROE | 2.45% | -10.99% | -11.72% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $16,067K ÷ $655,501K
= 2.45%
Duolingo Inc's return on equity (ROE) has fluctuated over the past three years. In 2021, the company reported a negative ROE of -11.72%, indicating that its net income was insufficient to generate a positive return for shareholders based on their equity investment. However, in 2022 and 2023, Duolingo Inc improved its ROE to -10.99% and 2.45% respectively.
While the increase in ROE from negative to positive territory is a positive sign, the ROE of 2.45% in 2023 suggests that the company may still be struggling to effectively utilize its equity to generate returns for shareholders. Further analysis into the company's profitability, operational efficiency, and capital structure may be necessary to understand the factors influencing Duolingo Inc's ROE performance and to identify potential areas for improvement.
Peer comparison
Dec 31, 2023