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.