Crowdstrike Holdings Inc (CRWD)

Fixed asset turnover

		Jan 31, 2024	Jan 31, 2023	Jan 31, 2022	Jan 31, 2021	Jan 31, 2020
Revenue	US$ in thousands	3,178,730	2,278,910	1,434,060	877,164	489,971
Property, plant and equipment	US$ in thousands	620,172	492,335	260,577	167,014	136,078
Fixed asset turnover		5.13	4.63	5.50	5.25	3.60

January 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,178,730K ÷ $620,172K
= 5.13

Fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. Crowdstrike Holdings Inc has shown a consistent trend of improving its fixed asset turnover over the past five years. The ratio increased from 3.60 in Jan 31, 2020, to 5.13 in Jan 31, 2024. This indicates that the company has been able to generate more revenue per dollar of investment in fixed assets over the years.

A higher fixed asset turnover ratio suggests that the company is using its fixed assets more efficiently to generate sales. Crowdstrike's ratio has been consistently above 4.00, indicating effective management of its fixed assets to drive revenue growth. This efficiency can be attributed to strong operational management, effective utilization of equipment and technology, and possibly streamlining of business processes.

However, a very high fixed asset turnover ratio may also indicate that the company is heavily reliant on its fixed assets to generate revenue, which could potentially lead to issues related to capacity constraints or underinvestment in assets. It is important for the company to strike a balance between maximizing asset utilization and ensuring that adequate investments are made in maintaining and upgrading fixed assets for sustainable growth.

Overall, Crowdstrike Holdings Inc's improving trend in fixed asset turnover demonstrates efficient utilization of its fixed assets to drive revenue generation, which is a positive indicator of the company's operational efficiency and management effectiveness.