Duolingo Inc (DUOL)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -13,259 | -65,195 | -60,007 |
| Long-term debt | US$ in thousands | — | — | — |
| Total stockholders’ equity | US$ in thousands | 655,501 | 542,078 | 513,056 |
| Return on total capital | -2.02% | -12.03% | -11.70% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-13,259K ÷ ($—K + $655,501K)
= -2.02%
Duolingo Inc's return on total capital has exhibited a consistent improvement over the past three years. The company's return on total capital was -2.02% as of December 31, 2023, compared to -12.03% in the previous year and -11.70% in 2021. This indicates that the company has been more efficient in generating returns from its total invested capital. However, it is important to note that the return on total capital is still negative, suggesting that the company may not be utilizing its capital optimally to generate profits. Further analysis of the company's operating performance and capital structure may be necessary to determine the factors contributing to the improvement in return on total capital and to assess the overall financial health of the company.
Peer comparison
Dec 31, 2023