Duolingo Inc (DUOL)
Solvency ratios
| 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 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 | — |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — |
| Financial leverage ratio | 1.50 | 1.46 | 1.42 | 1.40 | 1.40 | 1.38 | 1.34 | 1.33 | 1.31 | 1.29 | 1.21 | — |
Duolingo Inc's solvency ratios, as depicted by the debt-to-assets, debt-to-capital, and debt-to-equity ratios, consistently show a value of 0.00 across the reporting periods provided. This suggests that the company has not utilized debt as a source of financing relative to its assets, capital, or equity during the specified timeframe.
Additionally, the financial leverage ratio has been gradually increasing over the periods, starting from 1.21 on March 31, 2022, and reaching 1.50 on March 31, 2024. This indicates that the company's reliance on debt and other fixed obligations has been growing over time in relation to its equity. It is essential for stakeholders to monitor this trend closely, as a higher financial leverage ratio could potentially indicate increased financial risk and may impact the company's financial stability and ability to meet its debt obligations in the future.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | — | -72.85 | -8.13 | -6.71 | -7.89 | -8.22 | -17.61 | -178.47 | -209.46 |
The interest coverage ratio for Duolingo Inc has been fluctuating over the past several quarters, ranging from negative figures to extremely low positive ratios. The interest coverage ratio measures the company's ability to meet its interest obligations on debt with its operating income. A negative interest coverage ratio indicates that the company is not generating enough operating income to cover its interest expenses, which could be a cause for concern as it may indicate financial distress.
Duolingo's interest coverage ratio has shown a declining trend since the beginning of the time series, reaching very low levels in the most recent quarters. The significant negative ratios in some periods, particularly in the last two quarters, suggest that the company may be struggling to generate sufficient income to cover its interest costs.
Overall, based on the trend of the interest coverage ratios, it appears that Duolingo Inc may be facing challenges in meeting its interest obligations with its current level of operating income. Investors and stakeholders should monitor this ratio closely as it can provide insights into the company's financial health and ability to service its debt.