Duolingo Inc (DUOL)

Days of sales outstanding (DSO)

		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	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021
Receivables turnover		7.63	5.97	7.84	8.28	7.69	7.91	11.22	10.86	9.68
DSO	days	47.84	61.15	46.54	44.06	47.45	46.16	32.54	33.62	37.70

March 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 7.63
= 47.84

Duolingo Inc's Days Sales Outstanding (DSO) has fluctuated over the past several quarters. DSO represents the average number of days a company takes to collect revenue after a sale is made. A lower DSO indicates quicker cash collection and better liquidity.

In the latest quarter, ending March 31, 2024, the DSO stood at 47.84 days, which was an increase from the previous quarter's 61.15 days. This suggests that Duolingo took slightly longer to collect its sales revenue in the most recent period. Comparing to the same period a year ago, the DSO has increased slightly as well, indicating a slowdown in the collection of payments from customers.

The quarterly trend in DSO over the past year has shown some variability, with occasional spikes and decreases. This variability could indicate changes in customer payment patterns, sales volume, or the effectiveness of Duolingo's credit and collection policies.

Overall, while the recent increase in DSO is worth monitoring, Duolingo's DSO levels remain within a relatively stable range, and further analysis of trends and underlying factors would be necessary to assess the impact on the company's financial performance and cash flow management.