Duolingo Inc (DUOL)

Interest coverage is a financial ratio that reflects a company's ability to pay interest expenses on its outstanding debt. A higher interest coverage ratio indicates that the company is more capable of servicing its debt obligations.

Analyzing the interest coverage of Duolingo Inc based on the provided data reveals fluctuating trends over the years. In December 31, 2020, the interest coverage ratio was recorded at -52.84, indicating a negative value and suggesting that the company was unable to cover its interest expenses with its operating income.

By December 31, 2021, the interest coverage ratio improved to 1.04, albeit still relatively low. This suggests that Duolingo's operating income was just sufficient to cover its interest expenses during that period.

However, the ratio declined again by December 31, 2022, reaching -8.97. This negative interest coverage ratio implies that the company's operating income was insufficient to cover its interest obligations, raising concerns about its financial health and ability to meet debt payments.

In December 31, 2023, no specific data is provided, making it challenging to assess the company's financial position accurately for that year.

The absence of data for December 31, 2024, also hinders a complete analysis of Duolingo Inc's interest coverage ratio trend.

Overall, the significant fluctuations in Duolingo Inc's interest coverage ratio suggest varying levels of financial stress and the need for a closer examination of the company's ability to meet its debt obligations sustainably. Additional information and trend analysis would be beneficial to understand the company's financial performance more comprehensively.

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Dec 31, 2024