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	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021
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
Debt-to-capital ratio		0.00	0.00	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.