Duolingo Inc (DUOL)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	829,713	747,610	701,737	678,665	641,091	608,180	599,967	591,160	577,331	553,922	549,440	114,636
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—
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
Cash ratio		2.73	2.70	2.99	3.13	3.16	3.35	3.86	4.01	4.25	4.65	5.57	1.35

March 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($829,713K + $—K) ÷ $303,722K
= 2.73

The cash ratio of Duolingo Inc has been fluctuating over the past 12 quarters, ranging from 1.35 to 5.57. The ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover these obligations.

In the most recent quarter, ending March 31, 2024, the cash ratio stood at 2.73, which indicates that the company had $2.73 in cash and cash equivalents for every $1 of current liabilities. While this ratio has been relatively stable over the past few quarters, it has shown a decreasing trend since reaching a peak of 5.57 in the third quarter of 2021.

Overall, Duolingo Inc has maintained a healthy cash position relative to its short-term liabilities, providing a cushion for unforeseen expenses or downturns in the business. However, management should continue to monitor and manage its cash levels effectively to ensure liquidity and financial stability in the future.