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
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.