Duolingo Inc (DUOL)

Financial leverage ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	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	Mar 31, 2021	Dec 31, 2020
Total assets	US$ in thousands	1,301,730	1,219,550	1,139,440	1,068,670	964,229	870,714	834,803	790,379	747,347	713,699	701,050	684,511	661,311	617,777	181,693	176,874	175,739
Total stockholders’ equity	US$ in thousands	824,550	822,453	766,944	711,052	655,501	614,819	596,405	565,188	542,078	533,826	528,219	520,714	513,056	510,731	-93,777	-97,785	-80,691
Financial leverage ratio		1.58	1.48	1.49	1.50	1.47	1.42	1.40	1.40	1.38	1.34	1.33	1.31	1.29	1.21	—	—	—

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,301,730K ÷ $824,550K
= 1.58

Based on the financial leverage ratio data provided for Duolingo Inc, we observe the following trends:

- The financial leverage ratio remained stable at a level of "—," indicating that there was no data available for analysis in the earlier periods.
- Starting from September 30, 2021, the financial leverage ratio started to increase steadily, reaching 1.58 as of December 31, 2024.
- The increase in the financial leverage ratio over the period suggests that Duolingo Inc has been taking on more debt relative to its equity, indicating a higher degree of financial leverage or dependency on debt financing.
- A financial leverage ratio above 1 indicates that the company has more debt than equity in its capital structure.
- Investors and stakeholders should closely monitor the increasing trend in the financial leverage ratio as it can indicate a higher risk profile for the company due to its increased reliance on debt financing, which can impact its financial stability and ability to manage debt obligations.

In conclusion, Duolingo Inc's financial leverage ratio has been on a rising trajectory, signaling a preference for debt financing and highlighting the need for careful management of financial obligations and debt levels to ensure long-term financial health and sustainability.