Duolingo Inc (DUOL)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Revenue | US$ in thousands | 531,109 | 369,495 | 250,772 |
| Receivables | US$ in thousands | 88,975 | 46,728 | 33,163 |
| Receivables turnover | 5.97 | 7.91 | 7.56 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $531,109K ÷ $88,975K
= 5.97
The receivables turnover ratio measures how efficiently a company is able to collect cash from its customers. In the case of Duolingo Inc, the receivables turnover ratios for the past three years were 5.97 in 2023, 7.91 in 2022, and 7.56 in 2021.
A declining trend in the receivables turnover ratio, as observed in this case, could indicate that Duolingo Inc is taking longer to collect payments from its customers in recent years. This may be a cause for concern as it could potentially lead to cash flow issues and liquidity challenges for the company.
It is important for Duolingo Inc to investigate the reasons behind the decrease in the receivables turnover ratio and take necessary steps to improve the efficiency of its accounts receivable management. This could involve implementing stricter credit policies, incentivizing early payments from customers, or enhancing collection processes to shorten the receivables turnover period.
Peer comparison
Dec 31, 2023