Duolingo Inc (DUOL)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	583,001	531,109	483,948	442,389	403,936	369,495	338,685	306,215	276,632
Property, plant and equipment	US$ in thousands	13,209	11,792	12,008	12,571	12,842	12,969	13,191	13,356	10,254	8,211	8,010	8,211
Fixed asset turnover		44.14	45.04	40.30	35.19	31.45	28.49	25.68	22.93	26.98

March 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $583,001K ÷ $13,209K
= 44.14

Fixed asset turnover is a financial ratio that measures how efficiently a company is generating revenue from its investments in fixed assets. Duolingo Inc's fixed asset turnover has been steadily increasing over the past quarters, indicating an improvement in the company's ability to generate sales from its fixed assets. The ratio peaked at 45.04 in December 2023, suggesting that the company generated $45.04 in revenue for every dollar invested in fixed assets during that period.

This trend suggests that Duolingo Inc has been effectively utilizing its fixed assets to drive revenue growth. The high fixed asset turnover ratios indicate that the company is efficiently managing and utilizing its fixed assets to generate sales, which is a positive sign for investors and stakeholders. Overall, the increasing trend in fixed asset turnover reflects a positive operational performance and efficiency in utilizing fixed assets to drive revenue for Duolingo Inc.