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Duolingo (Duolingo) Net-Net Working Capital : $12.30 (As of Mar. 2024)


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What is Duolingo Net-Net Working Capital?

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.

Duolingo's Net-Net Working Capital for the quarter that ended in Mar. 2024 was $12.30.

The industry rank for Duolingo's Net-Net Working Capital or its related term are showing as below:

DUOL's Price-to-Net-Net-Working-Capital is ranked worse than
72.42% of 1222 companies
in the Software industry
Industry Median: 7.46 vs DUOL: 15.57

Duolingo Net-Net Working Capital Historical Data

The historical data trend for Duolingo's Net-Net Working Capital can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Duolingo Net-Net Working Capital Chart

Duolingo Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Net-Net Working Capital
-3.51 -3.77 11.25 10.85 12.13

Duolingo Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Net-Net Working Capital Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 11.10 11.57 11.73 12.13 12.30

Competitive Comparison of Duolingo's Net-Net Working Capital

For the Software - Application subindustry, Duolingo's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Duolingo's Price-to-Net-Net-Working-Capital Distribution in the Software Industry

For the Software industry and Technology sector, Duolingo's Price-to-Net-Net-Working-Capital distribution charts can be found below:

* The bar in red indicates where Duolingo's Price-to-Net-Net-Working-Capital falls into.



Duolingo Net-Net Working Capital Calculation

Duolingo's Net-Net Working Capital (NNWC) per share for the fiscal year that ended in Dec. 2023 is calculated as

Net-Net Working Capital(A: Dec. 2023 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(747.61+0.75 * 88.975+0.5 * 0-298.456
-0-0)/42.526
=12.13

Duolingo's Net-Net Working Capital (NNWC) per share for the quarter that ended in Mar. 2024 is calculated as

Net-Net Working Capital(Q: Mar. 2024 )
=(Cash, Cash Equivalents, Marketable Securities+0.75 * Accounts Receivable+0.5 * Total Inventories-Total Liabilities
-Preferred Stock-Minority Interest)/Shares Outstanding (EOP)
=(829.713+0.75 * 76.421+0.5 * 0-357.615
-0-0)/43.057
=12.30

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In calculating the Net-Net Working Capital (NNWC), Benjamin Graham assumed that a company's accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full.

In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.

This is a conservative way of estimating the company's value.


Duolingo  (NAS:DUOL) Net-Net Working Capital Explanation

One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham's strategy produced similar results.

Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener.


Duolingo Net-Net Working Capital Related Terms

Thank you for viewing the detailed overview of Duolingo's Net-Net Working Capital provided by GuruFocus.com. Please click on the following links to see related term pages.


Duolingo (Duolingo) Business Description

Industry
Traded in Other Exchanges
Address
5900 Penn Avenue, Pittsburgh, PA, USA, 15206
Duolingo Inc is a technology company that develops mobile learning platform to learn languages and is the top-grossing app in the Education category on both Google Play and the Apple App Store. Its products are powered by sophisticated data analytics and artificial intelligence and delivered with class art, animation, and design to make it easier for learners to stay motivated master new material, and achieve their learning goals. Its solutions include The Duolingo Language Learning App, Super Duolingo, Duolingo English Test: AI-Driven Language Assessment, Duolingo For Schools, Duolingo ABC, and Duolingo Math. It has three predominant sources of revenue; time-based subscriptions, in-app advertising placement by third parties, and the Duolingo English Test.
Executives
Natalie Glance officer: SVP, Engineering C/O DUOLINGO, INC., 5900 PENN AVE., PITTSBURGH PA 15206
Stephen C. Chen officer: General Counsel C/O DUOLINGO, INC., 5900 PENN AVE., PITTSBURGH PA 15206
Robert Meese officer: Chief Business Officer C/O DUOLINGO, INC., 5900 PENN AVE., PITTSBURGH PA 15206
Severin Hacker director, 10 percent owner, officer: Chief Technology Officer,, other: Co-Founder C/O DUOLINGO, INC., 5900 PENN AVE., PITTSBURGH PA 15206
Matthew Skaruppa officer: Chief Financial Officer C/O DUOLINGO, INC., 5900 PENN AVE., PITTSBURGH PA 15206
Ahn Luis Von director, 10 percent owner, officer: President & CEO, Co-Founder C/O ROOT, INC., 80 E. RICH STREET, SUITE 500, COLUMBUS OH 43215
Durable Capital Partners Lp 10 percent owner 4747 BETHESDA AVENUE, SUITE #1002, BETHESDA MD 20814
James H Shelton director 469 FLORIDA AVENUE NW, WASHINGTON DC 20001
Gillian Munson director C/O XO GROUP INC., 195 BROADWAY, 25TH FLOOR, NEW YORK NY 10007
Sara Clemens director C/O PANDORA MEDIA, INC., 2101 WEBSTER STREET, #1650, OAKLAND CA 94612
Ravi Viswanathan 10 percent owner 1954 GREENSPRING DRIVE, SUITE 600, TIMONIUM MD 21093
Newview Capital Fund I, L.p. 10 percent owner 1290 HOWARD AVE, SUITE 319, BURLINGAME CA 94010
Newview Capital Partners I, Llc 10 percent owner 1201 HOWARD AVENUE, SUITE 101, BURLINGAME CA 94010
Kpcb Digital Growth Founders Fund, Llc 10 percent owner 2750 SAND HILL ROAD, MENLO PARK CA 94025
Kpcb Dgf Associates, Llc 10 percent owner 2750 SAND HILL ROAD, MENLO PARK CA 94025

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