Crowdstrike Holdings Inc (CRWD)

Activity ratios

Short-term

Turnover ratios

	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Inventory turnover	—	9.84	9.74	10.17	12.41
Receivables turnover	3.73	3.64	3.90	3.67	2.97
Payables turnover	81.89	40.54	25.94	68.18	396.49
Working capital turnover	1.54	1.49	1.23	0.61	0.72

Activity ratios provide insights into how efficiently a company is managing its assets and liabilities to generate sales. Let's analyze the activity ratios of Crowdstrike Holdings Inc over the past five years:

1. Inventory Turnover:
- The inventory turnover ratio measures how many times a company's inventory is sold and replaced over a period. Crowdstrike's inventory turnover has shown a decreasing trend from 12.41 in 2020 to 9.74 in 2023, indicating a slower rate of selling and replenishing inventory.

2. Receivables Turnover:
- The receivables turnover ratio reflects how efficiently a company is collecting payments from customers. Crowdstrike's receivables turnover has been relatively stable, with a slight increase from 2.97 in 2020 to 3.73 in 2024. This suggests that the company is managing its accounts receivable effectively.

3. Payables Turnover:
- The payables turnover ratio shows how quickly a company pays its suppliers. Crowdstrike's payables turnover has fluctuated significantly over the years, with a notable decrease from 396.49 in 2020 to 25.94 in 2022. This may indicate changes in payment terms or supplier relationships.

4. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate sales. Crowdstrike's working capital turnover has shown an increasing trend, rising from 0.61 in 2021 to 1.54 in 2024. This suggests that the company is improving its efficiency in using its working capital to support its operations.

In conclusion, while Crowdstrike's inventory turnover has decreased, the stable receivables turnover and improving working capital turnover indicate effective management of assets and cash flows. The fluctuating payables turnover may require further investigation to understand the dynamics of the company's payment practices and supplier relationships.

Average number of days

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Days of inventory on hand (DOH)	days	—	37.08	37.46	35.87	29.41
Days of sales outstanding (DSO)	days	97.96	100.29	93.70	99.53	122.91
Number of days of payables	days	4.46	9.00	14.07	5.35	0.92

Crowdstrike Holdings Inc has displayed consistency in managing its inventory levels over the years, with the days of inventory on hand (DOH) hovering around 35-37 days, indicating efficient inventory management. This trend suggests that the company is effectively converting its inventory into sales.

In terms of collecting accounts receivable, Crowdstrike has shown improvement in efficiency as seen in the decreasing trend of days of sales outstanding (DSO) from 2020 to 2023. However, there was a slight uptick in 2024, which may warrant further monitoring to ensure timely collection of receivables.

On the payable side, the company has been extending the number of days it takes to pay its suppliers, as evidenced by the increasing number of days of payables from 2020 to 2022. However, there was a significant decrease in 2023, and the trend continued in 2024 with only 4.46 days, indicating a shorter payment period.

Overall, Crowdstrike Holdings Inc has demonstrated sound working capital management by efficiently managing its inventory levels, improving accounts receivable collection, and effectively balancing its payment terms with suppliers.

Long-term

	Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Fixed asset turnover	5.13	4.63	5.50	5.25	3.60
Total asset turnover	0.48	0.45	0.40	0.32	0.35

The fixed asset turnover ratio for Crowdstrike Holdings Inc has shown a generally positive trend over the past five years, increasing from 3.60 in 2020 to 5.13 in 2024. This indicates that the company has been more efficient in generating revenue from its fixed assets over time.

In contrast, the total asset turnover ratio has also shown an upward trend, albeit at a slower pace, rising from 0.35 in 2020 to 0.48 in 2024. This suggests that Crowdstrike Holdings Inc has been improving its overall efficiency in generating sales from its total assets.

Overall, both the fixed asset turnover and total asset turnover ratios demonstrate that Crowdstrike Holdings Inc has been effectively utilizing its assets to generate revenue, with the fixed asset turnover ratio indicating a more pronounced improvement in asset efficiency compared to the total asset turnover ratio.