Duolingo Inc (DUOL)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Revenue	US$ in thousands	531,109	369,495	250,772
Total current assets	US$ in thousands	897,798	697,183	619,271
Total current liabilities	US$ in thousands	277,362	181,766	119,131
Working capital turnover		0.86	0.72	0.50

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $531,109K ÷ ($897,798K – $277,362K)
= 0.86

The working capital turnover ratio for Duolingo Inc has improved over the past three years. The ratio increased from 0.50 in 2021 to 0.72 in 2022, and further to 0.86 in 2023. This indicates that the company has become more efficient in managing its working capital to generate sales revenue. A higher ratio signifies that the company is utilizing its working capital more effectively to support its operations and generate sales. This trend suggests that Duolingo Inc has been able to improve its working capital management and optimize its resources to drive business growth.