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 | 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 | |||
Payables | US$ in thousands | 2,625 | 2,447 | 2,712 | 2,305 | 986 | 1,177 | 3,363 | 1,504 | 2,018 | 7,818 | 8,708 | 4,266 |
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.
Peer comparison
Mar 31, 2024