Duolingo Inc (DUOL)
Quick ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | Mar 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 785,791 | 854,409 | 888,240 | 829,713 | 747,610 | 701,737 | 678,665 | 641,091 | 608,180 | 599,967 | 591,160 | 577,331 | 553,922 | 549,440 | 114,636 | 117,459 | 120,490 |
| Short-term investments | US$ in thousands | 91,854 | 26,354 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 422,231 | 342,133 | 317,724 | 303,722 | 277,362 | 234,934 | 217,106 | 202,813 | 181,766 | 155,630 | 147,326 | 135,775 | 119,131 | 98,645 | 85,051 | 84,078 | 65,690 |
| Quick ratio | 2.08 | 2.57 | 2.80 | 2.73 | 2.70 | 2.99 | 3.13 | 3.16 | 3.35 | 3.86 | 4.01 | 4.25 | 4.65 | 5.57 | 1.35 | 1.40 | 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
Duolingo Inc's quick ratio has been fluctuating over the past few years, indicating changes in the company's liquidity position. The quick ratio, which measures the company's ability to meet its short-term obligations using its most liquid assets, stood at 1.83 as of December 31, 2020, indicating that the company had $1.83 in liquid assets available to cover each dollar of its current liabilities.
The quick ratio decreased to 1.40 by March 31, 2021, before further declining to 1.35 by June 30, 2021. However, in the following quarters, the quick ratio saw a significant improvement, reaching 5.57 as of September 30, 2021, and further increasing to 4.65 by December 31, 2021.
Over the subsequent quarters, the quick ratio remained relatively stable, ranging between 4.01 and 3.16. By December 31, 2024, the quick ratio had decreased to 2.08, indicating a potential decline in the company's liquidity position compared to earlier periods.
Overall, Duolingo Inc's quick ratio shows variability in its liquidity position over the analyzed period, with fluctuations that may warrant further investigation into the company's ability to meet its short-term obligations using its readily available assets.
Peer comparison
Dec 31, 2024