Duolingo Inc (DUOL)

Receivables 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
Revenue (ttm)	US$ in thousands	583,001	531,109	483,948	442,389	403,936	369,495	338,685	306,215	276,632
Receivables	US$ in thousands	76,421	88,975	61,711	53,406	52,509	46,728	30,197	28,209	28,573
Receivables turnover		7.63	5.97	7.84	8.28	7.69	7.91	11.22	10.86	9.68

March 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $583,001K ÷ $76,421K
= 7.63

The receivables turnover ratio for Duolingo Inc has shown some fluctuations over the past few quarters. The ratio indicates how efficiently the company is able to collect on its outstanding receivables during a specific period.

In March 2022, the receivables turnover ratio was 9.68, suggesting that on average, Duolingo collected its outstanding receivables approximately 10 times during that period. This was followed by a significant increase in the ratio to 11.22 in September 2022, indicating an improvement in the company's ability to collect on its receivables.

However, in the subsequent quarters, the receivables turnover ratio decreased to 7.91 in December 2022 and further to 7.69 in March 2023. This may raise concerns about the efficiency of Duolingo's accounts receivable management during that period.

The ratio then increased to 8.28 in June 2023 and 7.84 in September 2023, suggesting some improvement in collecting receivables. In December 2023, the ratio dropped to 5.97, indicating a potential slowdown in receivables turnover.

The most recent data for March 31, 2024, shows a receivables turnover of 7.63, which is slightly lower than the previous quarters but still within a reasonable range. Overall, fluctuations in the receivables turnover ratio for Duolingo Inc suggest varying effectiveness in managing and collecting outstanding receivables during the analyzed period.