Duolingo Inc (DUOL)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 824,550 | 655,501 | 542,078 | 513,056 | -80,691 |
| ROE | 10.74% | 2.45% | -10.99% | -11.72% | — |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $88,574K ÷ $824,550K
= 10.74%
Duolingo Inc's Return on Equity (ROE) is a key financial ratio that measures the company's profitability by evaluating how effectively it generates profits from shareholders' equity. Looking at the historical trend, Duolingo Inc experienced negative ROE figures in both 2021 and 2022, indicating that the company was not effectively utilizing shareholder equity to generate profits during those years. However, there was a notable improvement in ROE in 2023, with a positive value of 2.45%, indicating a better performance in generating profits from equity. Furthermore, the ROE significantly increased in 2024 to 10.74%, suggesting a significant improvement in profitability and efficiency in using shareholder equity to generate returns. Overall, Duolingo Inc's ROE has shown a mixed performance over the years, with fluctuations from negative to positive values, but the recent positive trend indicates improved profitability and efficiency in utilizing shareholders' equity.
Peer comparison
Dec 31, 2024