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Duolingo (Duolingo) Piotroski F-Score : 6 (As of May. 14, 2024)


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What is Duolingo Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Duolingo has an F-score of 6 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Duolingo's Piotroski F-Score or its related term are showing as below:

DUOL' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Med: 5   Max: 7
Current: 6

During the past 5 years, the highest Piotroski F-Score of Duolingo was 7. The lowest was 4. And the median was 5.


Duolingo Piotroski F-Score Historical Data

The historical data trend for Duolingo's Piotroski F-Score 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 Piotroski F-Score Chart

Duolingo Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
N/A N/A 4.00 5.00 7.00

Duolingo Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Piotroski F-Score 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 5.00 5.00 6.00 7.00 6.00

Competitive Comparison of Duolingo's Piotroski F-Score

For the Software - Application subindustry, Duolingo's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score 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 Piotroski F-Score Distribution in the Software Industry

For the Software industry and Technology sector, Duolingo's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Duolingo's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* 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.

This Year (Mar24) TTM:Last Year (Mar23) TTM:
Net Income was 3.725 + 2.807 + 12.117 + 26.956 = $45.6 Mil.
Cash Flow from Operations was 37.167 + 37.65 + 49.193 + 83.514 = $207.5 Mil.
Revenue was 126.839 + 137.624 + 150.985 + 167.553 = $583.0 Mil.
Gross Profit was 93.051 + 101.37 + 110.414 + 122.362 = $427.2 Mil.
Average Total Assets from the begining of this year (Mar23)
to the end of this year (Mar24) was
(790.379 + 834.803 + 870.714 + 953.957 + 1068.667) / 5 = $903.704 Mil.
Total Assets at the begining of this year (Mar23) was $790.4 Mil.
Long-Term Debt & Capital Lease Obligation was $53.9 Mil.
Total Current Assets was $977.3 Mil.
Total Current Liabilities was $303.7 Mil.
Net Income was -15.045 + -18.445 + -13.93 + -2.582 = $-50.0 Mil.

Revenue was 88.386 + 96.065 + 103.824 + 115.661 = $403.9 Mil.
Gross Profit was 64.517 + 69.763 + 76.054 + 84.169 = $294.5 Mil.
Average Total Assets from the begining of last year (Mar22)
to the end of last year (Mar23) was
(684.511 + 701.05 + 713.699 + 747.347 + 790.379) / 5 = $727.3972 Mil.
Total Assets at the begining of last year (Mar22) was $684.5 Mil.
Long-Term Debt & Capital Lease Obligation was $22.4 Mil.
Total Current Assets was $741.2 Mil.
Total Current Liabilities was $202.8 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Duolingo's current Net Income (TTM) was 45.6. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Duolingo's current Cash Flow from Operations (TTM) was 207.5. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Mar23)
=45.605/790.379
=0.05770017

ROA (Last Year)=Net Income/Total Assets (Mar22)
=-50.002/684.511
=-0.07304777

Duolingo's return on assets of this year was 0.05770017. Duolingo's return on assets of last year was -0.07304777. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Duolingo's current Net Income (TTM) was 45.6. Duolingo's current Cash Flow from Operations (TTM) was 207.5. ==> 207.5 > 45.6 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Mar24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar23 to Mar24
=53.893/903.704
=0.05963568

Gearing (Last Year: Mar23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Mar22 to Mar23
=22.378/727.3972
=0.03076448

Duolingo's gearing of this year was 0.05963568. Duolingo's gearing of last year was 0.03076448. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Mar24)=Total Current Assets/Total Current Liabilities
=977.278/303.722
=3.21767274

Current Ratio (Last Year: Mar23)=Total Current Assets/Total Current Liabilities
=741.234/202.813
=3.65476572

Duolingo's current ratio of this year was 3.21767274. Duolingo's current ratio of last year was 3.65476572. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Duolingo's number of shares in issue this year was 47.353. Duolingo's number of shares in issue last year was 40.618. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=427.197/583.001
=0.73275518

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=294.503/403.936
=0.72908332

Duolingo's gross margin of this year was 0.73275518. Duolingo's gross margin of last year was 0.72908332. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Mar23)
=583.001/790.379
=0.73762208

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Mar22)
=403.936/684.511
=0.59010885

Duolingo's asset turnover of this year was 0.73762208. Duolingo's asset turnover of last year was 0.59010885. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+0+0+0+1+1
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Duolingo has an F-score of 6 indicating the company's financial situation is typical for a stable company.

Duolingo  (NAS:DUOL) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Duolingo Piotroski F-Score Related Terms

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Duolingo (Duolingo) Business Description

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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