Duolingo Inc (DUOL)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | 2.84 | — | 3.39 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 1.10 | 0.86 | 0.72 | 0.00 | 1.74 |
Duolingo Inc's activity ratios provide insights into how efficiently the company manages its operating assets.
1. Inventory Turnover:
- The inventory turnover ratio for Duolingo Inc was 3.39 in 2020, indicating that the company sold and replaced its inventory approximately 3.39 times during the year.
- In 2022, the inventory turnover decreased to 2.84, suggesting a slight decrease in the efficiency of managing inventory turnover.
2. Receivables Turnover:
- The data provided does not show any values for receivables turnover for the years 2020-2024, indicating a lack of information on how quickly the company collects its accounts receivable.
3. Payables Turnover:
- The data does not provide any information on payables turnover for the years 2020-2024, making it challenging to assess how quickly Duolingo Inc pays its suppliers.
4. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently a company generates revenue relative to its working capital.
- Duolingo Inc's working capital turnover was 1.74 in 2020, then dropped to 0.00 in 2021, indicating a significant decrease in generating revenue relative to working capital.
- The ratio improved in the following years, reaching 1.10 in 2024, indicating a better utilization of working capital to generate revenue.
Overall, while Duolingo Inc has shown varying efficiency levels in managing its operating assets across different years, a clearer picture would emerge with more comprehensive data on receivables and payables turnover ratios.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | 128.63 | — | 107.82 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Duolingo Inc's activity ratios can be analyzed using the data provided.
1. Days of Inventory on Hand (DOH):
- As of December 31, 2020, Duolingo Inc had an inventory turnover cycle of 107.82 days, indicating the average number of days it takes for the company to sell its inventory.
- The absence of data for December 31, 2021, and subsequent years suggests that information on inventory turnover is not available for those periods.
- The increase in the Days of Inventory on Hand to 128.63 days as of December 31, 2022 suggests a potential slowdown in inventory turnover, which may indicate inefficient management of inventory.
2. Days of Sales Outstanding (DSO):
- Data for Days of Sales Outstanding is not provided for any of the periods, indicating a lack of information on how long it takes for Duolingo Inc to collect its accounts receivable from customers.
- Without data on DSO, it is challenging to assess the efficiency of the company in collecting payments from its customers.
3. Number of Days of Payables:
- Like DSO, information on the Number of Days of Payables is not available for any of the periods, making it difficult to evaluate how long Duolingo Inc takes to pay its suppliers.
- The absence of data on payables turnover limits the ability to analyze the company's payment practices and liquidity management.
In conclusion, while the Days of Inventory on Hand ratio provides some insight into Duolingo Inc's inventory management efficiency, the lack of data on Days of Sales Outstanding and Number of Days of Payables hinders a comprehensive analysis of the company's overall activity ratios. Further information or additional ratios would be needed to assess the company's operational performance more comprehensively.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 28.49 | 0.01 | 11.15 |
| Total asset turnover | 0.57 | 0.56 | 0.49 | 0.00 | 0.92 |
The fixed asset turnover ratio measures a company's ability to generate sales from its investment in fixed assets. In the case of Duolingo Inc, the fixed asset turnover ratio experienced significant fluctuations over the years.
In December 31, 2020, Duolingo had a fixed asset turnover of 11.15, indicating that the company was generating significant revenues from its fixed assets. However, this ratio dropped drastically to 0.01 by December 31, 2021, suggesting that the company's fixed assets were not efficiently utilized to generate sales.
The fixed asset turnover ratio then rebounded sharply to 28.49 by December 31, 2022, indicating a substantial improvement in the efficiency of utilizing fixed assets for revenue generation. However, the data is not available for the subsequent years of 2023 and 2024.
Looking at the total asset turnover ratio, which measures a company's ability to generate sales from its total assets, Duolingo Inc had a total asset turnover of 0.92 on December 31, 2020. This ratio dropped to 0.00 by December 31, 2021, reflecting a significant decline in the company's ability to generate sales from total assets.
Subsequently, the total asset turnover ratio gradually improved to 0.49 by December 31, 2022, and further increased to 0.56 by December 31, 2023, and 0.57 by December 31, 2024. These improvements suggest that Duolingo Inc was able to enhance its efficiency in utilizing total assets to generate sales over the years.
Overall, the trends in both fixed asset turnover and total asset turnover ratios reflect fluctuations in Duolingo Inc's ability to efficiently generate sales from its assets, with significant improvements observed in later years after experiencing declines.