Duolingo Inc (DUOL)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 11,699 | -13,259 | -36,206 | -51,698 | -61,867 | -65,195 | -64,458 | -72,996 | -58,440 | |||
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 711,052 | 655,501 | 614,819 | 596,405 | 565,188 | 542,078 | 533,826 | 528,219 | 520,714 | 513,056 | 510,731 | -93,777 |
| Return on total capital | 1.65% | -2.02% | -5.89% | -8.67% | -10.95% | -12.03% | -12.07% | -13.82% | -11.22% |
March 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $11,699K ÷ ($—K + $711,052K)
= 1.65%
Duolingo Inc's return on total capital has shown a fluctuating pattern over the last several quarters. The return on total capital was positive at 1.65% as of March 31, 2024, indicating a modest profitability relative to the total capital employed. However, the company experienced negative returns in the preceding quarters, with the most significant decline recorded at -13.82% as of June 30, 2022.
The negative trend in return on total capital from June 2022 to December 2023 suggests that Duolingo Inc faced challenges in generating sufficient returns relative to the total capital invested in its operations. The gradual improvement in the return on total capital since December 2023 indicates a potential turnaround in the company's profitability, although further analysis is needed to understand the factors contributing to this improvement. Overall, monitoring and analyzing return on total capital trends can provide insights into the efficiency and effectiveness of Duolingo Inc's capital utilization and financial performance.
Peer comparison
Mar 31, 2024