Duolingo Inc (DUOL)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | Mar 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 88,574 | 86,784 | 66,231 | 45,605 | 16,067 | -9,980 | -31,232 | -50,002 | -59,574 | -63,161 | -73,686 | -58,817 | -60,135 | -53,025 | -27,231 | -27,015 | -15,776 |
| Total stockholders’ equity | US$ in thousands | 824,550 | 822,453 | 766,944 | 711,052 | 655,501 | 614,819 | 596,405 | 565,188 | 542,078 | 533,826 | 528,219 | 520,714 | 513,056 | 510,731 | -93,777 | -97,785 | -80,691 |
| ROE | 10.74% | 10.55% | 8.64% | 6.41% | 2.45% | -1.62% | -5.24% | -8.85% | -10.99% | -11.83% | -13.95% | -11.30% | -11.72% | -10.38% | — | — | — |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $88,574K ÷ $824,550K
= 10.74%
Duolingo Inc's return on equity (ROE) has experienced fluctuations over the past few years. The ROE was negative in the periods up to the third quarter of 2023, indicating that the company was not generating returns for its shareholders. However, starting from the fourth quarter of 2023, the ROE turned positive and has been increasing steadily.
The positive trend in ROE since late 2023 suggests that Duolingo Inc has been effectively utilizing its equity to generate profits for shareholders. The increasing ROE indicates improved efficiency in generating profits relative to the shareholders' equity invested in the company.
Overall, the recent positive ROE figures indicate that Duolingo Inc's profitability and efficiency have improved, reflecting positively on its financial performance and potential for creating value for shareholders.
Peer comparison
Dec 31, 2024