Duolingo Inc (DUOL)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | 128.63 | — | 107.82 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 0.00 | 128.63 | 0.00 | 107.82 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
Duolingo Inc's cash conversion cycle, a measure of how long it takes for a company to convert its investment in inventory and other inputs into cash flows, has shown fluctuations over the past few years. As of December 31, 2020, the company had a cash conversion cycle of 107.82 days, indicating that it took over three months to convert its resources into cash.
The following year, as of December 31, 2021, the cash conversion cycle improved significantly to 0.00 days, suggesting that Duolingo was able to efficiently manage its working capital and convert its investments into cash almost instantly. However, the cycle increased again by December 31, 2022, reaching 128.63 days, indicating a prolonged time period to convert resources into cash once again.
Subsequently, as of December 31, 2023, the cash conversion cycle reverted to 0.00 days, showing another period of efficiency in managing working capital. By December 31, 2024, the cycle remained at 0.00 days, implying that Duolingo continued to effectively convert its resources into cash in a timely manner.
Overall, while there have been fluctuations in Duolingo Inc's cash conversion cycle over the years, the company has demonstrated the ability to efficiently manage its working capital and convert its investments into cash in a timely manner, showcasing effective financial management practices.
Peer comparison
Dec 31, 2024