Duolingo Inc (DUOL)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 824,550 | 655,501 | 542,078 | 513,056 | -80,691 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | — |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $824,550K)
= 0.00
The debt-to-capital ratio for Duolingo Inc over the past five years shows a consistent trend of 0.00, indicating that the company has not utilized debt in its capital structure during this period. This implies that Duolingo has relied solely on equity financing to support its operations and growth. A debt-to-capital ratio of 0.00 suggests a low financial risk and a strong financial position, as the company is not burdened by debt obligations. However, it's important to note that a debt-free capital structure may also limit the company's ability to leverage debt for potential expansion or investment opportunities. Overall, Duolingo's consistent debt-to-capital ratio of 0.00 signifies a prudent capital management strategy and financial stability.
Peer comparison
Dec 31, 2024