Duolingo Inc (DUOL)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	155,804	142,105	129,304	119,352	109,433	99,431	91,613	83,389	75,657
Inventory	US$ in thousands	—	0	—	42,720	40,137	35,041	—	—	—	—	—	—
Inventory turnover		—	—	—	2.79	2.73	2.84	—	—	—

March 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $155,804K ÷ $—K
= —

Based on the available data, Duolingo Inc's inventory turnover ratio for the most recent quarter ending March 31, 2023, was 2.79. This indicates that the company's inventory turned over approximately 2.79 times during that period.

Comparing this ratio to previous quarters, we observe a stable trend with minor fluctuations. In the two quarters preceding March 31, 2023, the inventory turnover ratios were 2.73 and 2.84, respectively. While there is no data available for the other quarters, the consistency in the range of ratios suggests that Duolingo Inc has been effectively managing its inventory levels relative to its sales volume.

A higher inventory turnover ratio generally suggests more efficient inventory management, indicating that Duolingo Inc is selling its inventory quickly and not holding excess stock. However, it's important to consider the industry benchmarks and specific business dynamics to fully evaluate the significance of this ratio.

Overall, with a consistent inventory turnover ratio around 2.7-2.8 in recent quarters, Duolingo Inc appears to have a reasonable level of control over its inventory management, supporting efficient operations and potentially lower carrying costs.