Duolingo Inc (DUOL)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 785,791 | 747,610 | 608,180 | 553,922 | 120,490 |
| Short-term investments | US$ in thousands | 91,854 | — | — | — | — |
| Total current liabilities | US$ in thousands | 422,231 | 277,362 | 181,766 | 119,131 | 65,690 |
| Cash ratio | 2.08 | 2.70 | 3.35 | 4.65 | 1.83 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($785,791K
+ $91,854K)
÷ $422,231K
= 2.08
The cash ratio of Duolingo Inc has displayed fluctuating trends over the five-year period from December 31, 2020, to December 31, 2024. Starting at 1.83 in 2020, the cash ratio increased significantly to 4.65 by the end of 2021, indicating a substantial improvement in the company's ability to cover its short-term liabilities with cash and cash equivalents.
However, in subsequent years, the cash ratio experienced some volatility, declining to 3.35 by the end of 2022, then dropping further to 2.70 by December 31, 2023, and ultimately reaching 2.08 by the end of 2024. While the cash ratio remained above 1 in all years, signaling the company's ability to meet its immediate financial obligations, the decreasing trend observed from 2021 onwards could indicate a potential strain on Duolingo Inc's liquidity position over time.
Further analysis and comparison with industry benchmarks would be advisable to assess the efficiency of Duolingo Inc's cash management and its ability to navigate potential liquidity challenges in the future.
Peer comparison
Dec 31, 2024