Duolingo Inc (DUOL)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Cash | US$ in thousands | 747,610 | 608,180 | 553,922 |
| Short-term investments | US$ in thousands | — | — | — |
| Receivables | US$ in thousands | 88,975 | 46,728 | 33,163 |
| Total current liabilities | US$ in thousands | 277,362 | 181,766 | 119,131 |
| Quick ratio | 3.02 | 3.60 | 4.93 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($747,610K
+ $—K
+ $88,975K)
÷ $277,362K
= 3.02
The quick ratio of Duolingo Inc has displayed a decreasing trend over the past three years, declining from 4.93 in 2021 to 3.60 in 2022 and further to 3.02 in 2023. This indicates that the company's ability to meet its short-term obligations with its most liquid assets has weakened over time. While a quick ratio above 1.0 signifies that the company can cover its current liabilities using its quick assets, the decreasing trend may warrant attention from stakeholders. It is recommended that Duolingo Inc assess its liquidity position and take measures to ensure its short-term solvency in the future.
Peer comparison
Dec 31, 2023