Duolingo Inc (DUOL)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 785,791 | 747,610 | 608,180 | 553,922 | 120,490 |
| Short-term investments | US$ in thousands | 91,854 | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 422,231 | 277,362 | 181,766 | 119,131 | 65,690 |
| Quick ratio | 2.08 | 2.70 | 3.35 | 4.65 | 1.83 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($785,791K
+ $91,854K
+ $—K)
÷ $422,231K
= 2.08
The quick ratio of Duolingo Inc has shown a strong upward trend over the past five years, indicating an improvement in its short-term liquidity position. Starting at 1.83 in December 2020, the ratio increased significantly to 4.65 by December 2021, demonstrating the company's ability to cover its current liabilities with its most liquid assets. Although there was a slight decrease to 3.35 by December 2022, the quick ratio remained at a healthy level, indicating Duolingo's continued ability to meet its short-term obligations comfortably. In December 2023, the ratio decreased further to 2.70 but remained above the acceptable threshold of 1, reflecting a satisfactory liquidity position. By December 2024, the quick ratio decreased to 2.08, signaling a potential decrease in the company's ability to cover its current liabilities with its most liquid assets compared to the previous year. Overall, Duolingo Inc has maintained a strong liquidity position over the analyzed period, although some fluctuations were observed in the quick ratio, suggesting a need for continued monitoring of the company's short-term liquidity management.
Peer comparison
Dec 31, 2024