Duolingo Inc (DUOL)

Working capital 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
Revenue (ttm)	US$ in thousands	583,001	531,109	483,948	442,389	403,936	369,495	338,685	306,215	276,632
Total current assets	US$ in thousands	977,278	897,798	819,105	784,941	741,234	697,183	668,331	655,150	640,635	619,271	596,344	162,568
Total current liabilities	US$ in thousands	303,722	277,362	234,934	217,106	202,813	181,766	155,630	147,326	135,775	119,131	98,645	85,051
Working capital turnover		0.87	0.86	0.83	0.78	0.75	0.72	0.66	0.60	0.55

March 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $583,001K ÷ ($977,278K – $303,722K)
= 0.87

The working capital turnover of Duolingo Inc has been fluctuating over the past few quarters, ranging from 0.55 to 0.87. The working capital turnover measures the efficiency of a company in utilizing its working capital to generate sales revenue. A higher working capital turnover ratio indicates that the company is efficiently using its working capital to generate sales.

In the case of Duolingo Inc, the working capital turnover has been increasing gradually over the quarters, showing a positive trend in the company's ability to generate revenue from its working capital. This improvement suggests that Duolingo Inc is becoming more efficient in managing its working capital and turning it into sales.

However, it is essential to continue monitoring the working capital turnover ratio to ensure that the company's efficiency in utilizing its working capital remains stable or improves further. A consistent and improving working capital turnover ratio is a positive sign for Duolingo Inc's financial health and operational efficiency.