Duolingo Inc (DUOL)

Payables 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
Payables	US$ in thousands	2,625	2,447	2,712	2,305	986	1,177	3,363	1,504	2,018
Payables turnover		59.35	58.07	47.68	51.78	110.99	84.48	27.24	55.44	37.49

March 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $155,804K ÷ $2,625K
= 59.35

The payables turnover ratio measures how efficiently a company manages its accounts payable by comparing the purchases made on credit to the average accounts payable balance. A higher turnover ratio indicates that the company is paying its suppliers more frequently within a given period.

Analyzing the payables turnover of Duolingo Inc from the provided data shows some fluctuation over the past quarters. The ratio was highest at 110.99 on March 31, 2023, indicating that the company paid its suppliers over 100 times during that quarter. This could suggest aggressive management of payables and efficient cash flow management.

However, the ratio decreased significantly in the subsequent quarters, hitting its lowest point at 27.24 on September 30, 2022. This sharp decline may indicate a change in the company's payment policies or delays in settling outstanding payables.

The ratios have shown some variability in the remaining quarters, ranging from 37.49 to 59.35. Overall, the trend suggests that Duolingo Inc has been managing its payables effectively, although there have been periods of fluctuation in the efficiency of payables turnover.

Further analysis of the company's financial statements and operational activities would be needed to understand the reasons behind the fluctuations in the payables turnover ratio and to evaluate the impact on Duolingo Inc's overall financial performance.