Duolingo Inc (DUOL)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	49,358	40,271	35,714	11,924	-12,921	-35,747	-51,175	-61,456	-64,897	-64,281	-72,996	-58,440	-60,048	-53,204	-27,571	-27,011	-16,011
Interest expense (ttm)	US$ in thousands	0	0	0	0	182	4,455	7,707	7,837	7,934	3,661	409	279	0	0	0	0	0
Interest coverage		—	—	—	—	-70.99	-8.02	-6.64	-7.84	-8.18	-17.56	-178.47	-209.46	—	—	—	—	—

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $49,358K ÷ $0K
= —

The interest coverage ratio reflects Duolingo Inc's ability to meet its interest obligations with its operating income. Based on the data provided:

- The interest coverage ratio was not calculable for the periods ending December 31, 2020, to December 31, 2021, as the interest expense was not available.
- From March 31, 2022, to March 31, 2024, Duolingo Inc's interest coverage ratio was negative, indicating that the company's operating income was insufficient to cover its interest expenses during these periods.
- The interest coverage ratio improved in the quarters ending June 30, 2024, to September 30, 2024, as the values are not renderable.

Overall, the negative interest coverage ratios suggest potential financial distress for Duolingo Inc during the specified periods, as the company may struggle to meet its interest obligations with its operating income. Investors and creditors should pay close attention to future financial performance to assess any improvements in the company's ability to cover its interest expenses.