Duolingo, Inc. cash flow to debt ratio of 413.55% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.

Duolingo, Inc.'s free cash flow has increased 35.23% from $273.40M last year to $369.73M, signaling increasing performance

Duolingo, Inc.'s debt to equity ratio is 0.06, which means that the company's assets are healthy financed, signaling financial stability.

Duolingo, Inc.'s debt has decreased relative to shareholder equity from 0.07 last year to 0.06 today, signaling strengthened financials

Duolingo, Inc. has a net cash position, so leverage is healthy.

Duolingo, Inc. earns at least as much interest as it pays. Interest obligations are fully covered.

Duolingo, Inc.'s profit margin has increased (202.97%) in the last year from 11.84% to 35.87%, signaling increasing performance

Duolingo, Inc.'s short-term assets of $1.44B exceed its short-term liabilities of $551.15M

Duolingo, Inc.'s return on assets of 19.81% is higher than the 5.00% threshold, indicating efficient asset utilization

Duolingo, Inc.'s return on equity of 30.11%, is higher than 15.00%, indicating good performance

Duolingo, Inc.'s operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation

Duolingo, Inc. had positive net income in 3 out of 5 years, indicating stable and consistent earnings

Duolingo, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Duolingo, Inc. has a free cash flow yield of 5.78%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Duolingo, Inc.'s yearly earnings has increased 367.48% since last year from $88.57M to $414.06M, signaling increasing performance

Duolingo, Inc.'s yearly revenue has increased 38.71% since last year from $748.02M to $1.04B, signaling increasing performance

ROIC 10.85% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.

Duolingo, Inc.'s 3-year revenue CAGR of 41.08% is positive, indicating growing revenue over the past 3 years

Duolingo, Inc. had revenue growth in 5 out of 5 years, indicating consistent revenue performance

Duolingo, Inc. had positive ROE in 3 out of 5 years, indicating consistent and reliable returns on equity

Duolingo, Inc. is undervalued relative to its fair value price of 159.86 based on Discounted Cash Flow model

Duolingo, Inc. has an earnings yield of 6.41%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings

Duolingo, Inc. is overvalued relative to its fair value price of 42.44 based on EBITDA multiple model

Duolingo, Inc. has an EV/EBITDA ratio of 27.16x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

Duolingo, Inc. has insufficient data to evaluate this check.

Duolingo, Inc. had non-positive diluted EPS five years ago; the PEG ratio is not meaningful and the check fails.

Duolingo, Inc. has a price-to-book ratio of 4.54x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value

Duolingo, Inc. has a price-to-sales ratio of 5.59x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue