Duolingo Inc (DUOL)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 747,610 | 608,180 | 553,922 |
| Short-term investments | US$ in thousands | — | — | — |
| Total current liabilities | US$ in thousands | 277,362 | 181,766 | 119,131 |
| Cash ratio | 2.70 | 3.35 | 4.65 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($747,610K
+ $—K)
÷ $277,362K
= 2.70
The cash ratio of Duolingo Inc has exhibited a decreasing trend over the past three years, declining from 4.65 in 2021 to 2.70 in 2023. This indicates that the company's cash and cash equivalents relative to its current liabilities have decreased over time. While a high cash ratio is generally viewed as favorable as it signifies a company's ability to cover its short-term obligations with cash on hand, the declining trend in Duolingo's cash ratio may signal potential liquidity concerns or a shift in the company's cash management strategy. It is important for investors and analysts to monitor this trend closely to assess the company's liquidity position and financial health.
Peer comparison
Dec 31, 2023