Duolingo Inc (DUOL)

Quick 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	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	—	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	76,421	88,975	61,711	53,406	52,509	46,728	30,197	28,209	28,573	33,163	20,737	25,129
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
Quick ratio		2.98	3.02	3.25	3.37	3.42	3.60	4.05	4.20	4.46	4.93	5.78	1.64

March 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($829,713K + $—K + $76,421K) ÷ $303,722K
= 2.98

Duolingo Inc's quick ratio has shown a decreasing trend over the past several quarters, from a high of 5.78 in the third quarter of 2021 to 2.98 in the first quarter of 2024. Despite the decline, the quick ratio remains above 1.0 in all periods, indicating that the company is able to cover its short-term liabilities with its most liquid assets. The quick ratio exceeding 2.0 in all periods suggests that Duolingo Inc has a strong ability to meet its short-term obligations using its quick assets, such as cash and accounts receivable. Overall, while the decreasing trend warrants monitoring, the consistently healthy quick ratios suggest strong liquidity and financial stability for Duolingo Inc.