Duolingo Inc (DUOL)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
March 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $711,052K)
= 0.00
Duolingo Inc has consistently maintained a debt-to-capital ratio of 0.00% across all reported periods, indicating that the company has not relied on debt financing as a significant portion of its capital structure. This suggests that the company has primarily funded its operations and growth using equity rather than debt. A low or zero debt-to-capital ratio can be interpreted positively by investors and creditors as it signifies a lower financial risk and less exposure to interest rate fluctuations. However, it is important to note that while a zero debt-to-capital ratio may reflect financial stability, it could also imply missed opportunities to leverage debt for potential growth or tax benefits. Further analysis of the company's long-term capital strategy and risk management approach would provide additional insights into its financial health and future prospects.
Peer comparison
Mar 31, 2024