Duolingo Inc (DUOL)

Working capital turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	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	Mar 31, 2021	Dec 31, 2020
Revenue (ttm)	US$ in thousands	748,024	689,459	634,489	583,001	531,109	483,948	442,389	403,936	369,495	338,685	306,215	276,632	250,772	226,026	207,736	188,944	161,696
Total current assets	US$ in thousands	1,101,590	1,058,440	1,041,560	977,278	897,798	772,981	784,941	741,234	697,183	668,331	655,150	640,635	619,271	596,344	162,568	158,994	158,380
Total current liabilities	US$ in thousands	422,231	342,133	317,724	303,722	277,362	234,934	217,106	202,813	181,766	155,630	147,326	135,775	119,131	98,645	85,051	84,078	65,690
Working capital turnover		1.10	0.96	0.88	0.87	0.86	0.90	0.78	0.75	0.72	0.66	0.60	0.55	0.50	0.45	2.68	2.52	1.74

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $748,024K ÷ ($1,101,590K – $422,231K)
= 1.10

Duolingo Inc's working capital turnover ratio shows a fluctuating trend over the period provided. The ratio increased from 1.74 as of December 31, 2020, to 2.68 as of June 30, 2021, indicating an improvement in the company's efficiency in using its working capital to generate sales. However, there was a sharp decline in the ratio to 0.45 as of September 30, 2021, and subsequently decreased to 0.50 by December 31, 2021.

From March 31, 2022, to June 30, 2024, the working capital turnover ratio gradually increased from 0.55 to 0.88, suggesting a recovery in the company's working capital utilization efficiency. Notably, the ratio surpassed the previous high of 2.68 and reached 1.10 by December 31, 2024, indicating a potential improvement in managing its working capital to support its sales activities.

Overall, fluctuations in the working capital turnover ratio of Duolingo Inc suggest varying levels of efficiency in utilizing its working capital to generate revenue over the analyzed period.